Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 10, 2018 | Dec. 31, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | APPLIED INDUSTRIAL TECHNOLOGIES INC | ||
Entity Central Index Key | 109,563 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (actual number) | 38,721,431 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,604,976,726 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Net Sales | $ 3,073,274 | $ 2,593,746 | $ 2,519,428 |
Cost of Sales | 2,189,279 | 1,856,051 | 1,812,006 |
Gross Profit | 883,995 | 737,695 | 707,422 |
Selling, Distribution and Administrative, including depreciation | 658,168 | 562,309 | 552,846 |
Goodwill Impairment | 0 | 0 | 64,794 |
Operating Income | 225,827 | 175,386 | 89,782 |
Interest Expense | 24,142 | 8,831 | 9,004 |
Interest Income | (657) | (290) | (241) |
Other (Income) Expense, net | (2,376) | (121) | 2,041 |
Income Before Income Taxes | 204,718 | 166,966 | 78,978 |
Income Tax Expense | 63,093 | 33,056 | 49,401 |
Net Income | $ 141,625 | $ 133,910 | $ 29,577 |
Net Income Per Share — Basic | $ 3.65 | $ 3.43 | $ 0.75 |
Net Income Per Share — Diluted | $ 3.61 | $ 3.40 | $ 0.75 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income per the statements of consolidated income | $ 141,625 | $ 133,910 | $ 29,577 |
Other comprehensive (loss) income, before tax: | |||
Foreign currency translation adjustments | (8,875) | 2,238 | (24,441) |
Post-employment benefits: | |||
Actuarial gain (loss) on re-measurement | 709 | 2,038 | (1,998) |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs | (73) | 506 | 518 |
Unrealized gain (loss) on investment securities available for sale | 37 | 91 | (52) |
Total other comprehensive (loss) income, before tax | (8,202) | 4,873 | (25,973) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 319 | 1,029 | (598) |
Other comprehensive (loss) income, net of tax | (8,521) | 3,844 | (25,375) |
Comprehensive income | $ 133,104 | $ 137,754 | $ 4,202 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 54,150 | $ 105,057 |
Accounts receivable, less allowances of $13,566 and $9,628 | 548,811 | 390,931 |
Inventories | 422,069 | 345,145 |
Other current assets | 32,990 | 41,409 |
Total current assets | 1,058,020 | 882,542 |
Property — at cost | ||
Land | 14,411 | 14,250 |
Buildings | 104,419 | 97,529 |
Equipment, including computers and software | 177,813 | 162,432 |
Total property — at cost | 296,643 | 274,211 |
Less accumulated depreciation | 175,300 | 166,143 |
Property — net | 121,343 | 108,068 |
Identifiable intangibles, net | 435,947 | 163,562 |
Goodwill | 646,643 | 206,135 |
Other assets | 23,788 | 27,288 |
Total Assets | 2,285,741 | 1,387,595 |
Current liabilities | ||
Accounts payable | 256,886 | 180,614 |
Current portion of long-term debt | 19,183 | 4,814 |
Compensation and related benefits | 73,370 | 58,785 |
Other current liabilities | 83,112 | 65,540 |
Total current liabilities | 432,551 | 309,753 |
Long-term debt | 944,522 | 286,769 |
Post-employment benefits | 11,985 | 16,715 |
Other liabilities | 81,720 | 29,102 |
Total Liabilities | 1,470,778 | 642,339 |
Shareholders’ Equity | ||
Preferred stock — no par value; 2,500 shares authorized; none issued or outstanding | 0 | 0 |
Common stock — no par value; 80,000 shares authorized; 54,213 shares issued; 38,703 and 39,041 shares outstanding, respectively | 10,000 | 10,000 |
Additional paid-in capital | 169,383 | 164,655 |
Retained earnings | 1,129,678 | 1,033,751 |
Treasury shares — at cost (15,510 and 15,172 shares), respectively | (403,875) | (381,448) |
Accumulated other comprehensive loss | (90,223) | (81,702) |
Total Shareholders’ Equity | 814,963 | 745,256 |
Total Liabilities and Shareholders’ Equity | $ 2,285,741 | $ 1,387,595 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets | ||
Accounts receivable, allowances | $ 13,566 | $ 9,628 |
Shareholders’ Equity | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 2,500 | 2,500 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 80,000 | 80,000 |
Common stock, shares issued | 54,213 | 54,213 |
Common Stock, Shares, Outstanding | 38,703 | 39,041 |
Treasury stock, shares | 15,510 | 15,172 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 141,625 | $ 133,910 | $ 29,577 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Goodwill Impairment | 0 | 0 | 64,794 |
Depreciation and amortization of property | 17,798 | 15,306 | 15,966 |
Amortization of intangibles | 32,065 | 24,371 | 25,580 |
Amortization of stock appreciation rights and options | 1,961 | 1,891 | 1,543 |
Deferred income taxes | 1,615 | (2,852) | (6,581) |
Provision for losses on accounts receivable | 2,803 | 2,071 | 4,303 |
Unrealized foreign exchange transaction (gains) losses | (667) | (333) | 61 |
Other share-based compensation expense | 4,666 | 3,629 | 2,524 |
(Gain) loss on sale of property | (335) | (1,541) | 337 |
Other | 0 | 103 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (83,103) | (42,267) | 26,414 |
Inventories | (33,436) | (3,624) | 25,081 |
Other operating assets | 6,947 | (6,162) | 2,964 |
Accounts payable | 50,345 | 32,076 | (28,644) |
Other operating liabilities | 5,020 | 8,041 | (1,905) |
Cash provided by Operating Activities | 147,304 | 164,619 | 162,014 |
Cash Flows from Investing Activities | |||
Property purchases | (23,230) | (17,045) | (13,130) |
Proceeds from property sales | 978 | 2,924 | 603 |
Cash paid for acquisition of businesses, net of cash acquired | (775,654) | (2,773) | (62,504) |
Cash used in Investing Activities | (797,906) | (16,894) | (75,031) |
Cash Flows from Financing Activities | |||
Net borrowings (repayments) under revolving credit facility, classified as long term | 19,500 | (33,000) | (19,000) |
Borrowings under long-term debt facilities | 780,000 | 0 | 125,000 |
Long-term debt repayments | (125,420) | (3,353) | (98,662) |
Debt issuance costs | (3,298) | 0 | (719) |
Purchases of treasury shares | (22,778) | (8,242) | (37,465) |
Dividends paid | (45,858) | (44,619) | (43,330) |
Excess tax benefits from share-based compensation | 0 | 0 | 208 |
Acquisition holdback payments | (319) | (11,307) | (18,913) |
Exercise of stock appreciation rights and options | 102 | 656 | 896 |
Taxes paid for shares withheld | 1,645 | 3,484 | 1,022 |
Cash provided by (used in) Financing Activities | 600,284 | (103,349) | (93,007) |
Effect of exchange rate changes on cash | (589) | 820 | (3,585) |
(Decrease) increase in cash and cash equivalents | (50,907) | 45,196 | (9,609) |
Cash and cash equivalents at beginning of year | 105,057 | 59,861 | 69,470 |
Cash and Cash Equivalents at End of Year | 54,150 | 105,057 | 59,861 |
Cash paid during the year for: | |||
Income taxes | 41,724 | 38,772 | 54,749 |
Interest | $ 25,560 | $ 8,561 | $ 9,497 |
Statements of Consolidated Shar
Statements of Consolidated Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Stock Options and Stock Appreciation Rights [ Member] | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalStock Options and Stock Appreciation Rights [ Member] | Additional Paid-in CapitalPerformance Shares [Member] | Additional Paid-in CapitalRestricted Stock Units (RSUs) [Member] | Retained Earnings | Treasury Shares-at Cost | Treasury Shares-at CostStock Options and Stock Appreciation Rights [ Member] | Treasury Shares-at CostPerformance Shares [Member] | Treasury Shares-at CostRestricted Stock Units (RSUs) [Member] | Accumulated Other Comprehensive Income (Loss) | Parent [Member] | Parent [Member]Stock Options and Stock Appreciation Rights [ Member] | Parent [Member]Performance Shares [Member] | Parent [Member]Restricted Stock Units (RSUs) [Member] |
Beginning balance, shares at Jun. 30, 2015 | 39,905 | ||||||||||||||||
Beginning balance at Jun. 30, 2015 | $ 10,000 | $ 160,072 | $ 969,548 | $ (338,121) | $ (60,171) | $ 741,328 | |||||||||||
Net income | $ 29,577 | 29,577 | |||||||||||||||
Other comprehensive income (loss) | (25,375) | (25,375) | (25,375) | ||||||||||||||
Cash dividends - $1.10, $1.14 and $1.18 per share for 2016, 2017 and 2018 respectively | (54,266) | (54,266) | |||||||||||||||
Purchases of common stock for treasury, shares | (951) | ||||||||||||||||
Purchases of common stock for treasury | (37,465) | (37,465) | |||||||||||||||
Treasury shares issued for: | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 64 | ||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (391) | $ (308) | $ (530) | ||||||||||||||
Exercise of stock appreciation rights and options | $ 1,000 | ||||||||||||||||
Performance share awards, shares | 8 | ||||||||||||||||
Performance share awards | $ 116 | ||||||||||||||||
Restricted stock units, shares | 15 | ||||||||||||||||
Restricted stock units | $ 232 | ||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ 609 | $ (192) | $ (298) | ||||||||||||||
Compensation expense | 2,524 | 1,543 | 2,524 | 1,543 | |||||||||||||
Other, shares | 16 | ||||||||||||||||
Other | (381) | (38) | 350 | (69) | |||||||||||||
Ending balance, shares at Jun. 30, 2016 | 39,057 | ||||||||||||||||
Ending balance at Jun. 30, 2016 | $ 10,000 | 162,529 | 944,821 | (373,888) | (85,546) | 657,916 | |||||||||||
Net income | 133,910 | 133,910 | |||||||||||||||
Other comprehensive income (loss) | $ 3,844 | 3,844 | 3,844 | ||||||||||||||
Cash dividends - $1.10, $1.14 and $1.18 per share for 2016, 2017 and 2018 respectively | (45,005) | (45,005) | |||||||||||||||
Purchases of common stock for treasury, shares | (163) | ||||||||||||||||
Purchases of common stock for treasury | (8,242) | (8,242) | |||||||||||||||
Treasury shares issued for: | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 111 | ||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (2,218) | (360) | (624) | ||||||||||||||
Exercise of stock appreciation rights and options | 105 | ||||||||||||||||
Performance share awards, shares | 10 | ||||||||||||||||
Performance share awards | 126 | ||||||||||||||||
Restricted stock units, shares | 15 | ||||||||||||||||
Restricted stock units | 227 | ||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (2,113) | (234) | (397) | ||||||||||||||
Compensation expense | 3,629 | 1,891 | 3,629 | 1,891 | |||||||||||||
Other, shares | 11 | ||||||||||||||||
Other | (192) | 25 | 224 | 57 | |||||||||||||
Ending balance, shares at Jun. 30, 2017 | 39,041 | 39,041 | |||||||||||||||
Ending balance at Jun. 30, 2017 | $ 745,256 | $ 10,000 | 164,655 | 1,033,751 | (381,448) | (81,702) | 745,256 | ||||||||||
Net income | 141,625 | 141,625 | |||||||||||||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (8,050) | (8,050) | |||||||||||||||
Other comprehensive income (loss) | $ (8,521) | (8,521) | |||||||||||||||
Reclassification of certain income tax effects to retained earnings, net amount | Adjustments for New Accounting Pronouncement [Member] | 471 | (471) | 0 | ||||||||||||||
Cash dividends - $1.10, $1.14 and $1.18 per share for 2016, 2017 and 2018 respectively | (46,162) | (46,162) | |||||||||||||||
Purchases of common stock for treasury, shares | (393) | ||||||||||||||||
Purchases of common stock for treasury | (22,778) | (22,778) | |||||||||||||||
Treasury shares issued for: | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 58 | 19 | |||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (482) | $ (273) | $ (740) | ||||||||||||||
Exercise of stock appreciation rights and options | $ 84 | ||||||||||||||||
Performance share awards, shares | 5 | ||||||||||||||||
Performance share awards | $ (24) | ||||||||||||||||
Restricted stock units, shares | 15 | ||||||||||||||||
Restricted stock units | $ (56) | ||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (398) | $ (297) | $ (796) | ||||||||||||||
Compensation expense | 4,666 | $ 1,961 | 4,666 | $ 1,961 | |||||||||||||
Other, shares | 16 | ||||||||||||||||
Other | (404) | (7) | 347 | (64) | |||||||||||||
Ending balance, shares at Jun. 30, 2018 | 38,703 | 38,703 | |||||||||||||||
Ending balance at Jun. 30, 2018 | $ 814,963 | $ 10,000 | $ 169,383 | $ 1,129,678 | $ (403,875) | $ (90,223) | $ 814,963 |
Statements of Consolidated Sha8
Statements of Consolidated Shareholders' Equity Statements of Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 1.18 | $ 1.14 | $ 1.10 |
Business and Accounting Policie
Business and Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | BUSINESS AND ACCOUNTING POLICIES Business Applied Industrial Technologies, Inc. and subsidiaries (the “Company” or “Applied”) is a leading distributor of bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, and other industrial supplies, serving Maintenance Repair & Operations (MRO) and Original Equipment Manufacturer (OEM) customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial, fluid power, and flow control applications, as well as customized mechanical, fabricated rubber, fluid power, and flow control shop services. Applied also offers storeroom services and inventory management solutions that provide added value to its customers. Although the Company does not generally manufacture the products it sells, it does assemble and repair certain products and systems. Consolidation The consolidated financial statements include the accounts of Applied Industrial Technologies, Inc. and its subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Foreign Currency The financial statements of the Company’s Canadian, Mexican, Australian and New Zealand subsidiaries are measured using local currencies as their functional currencies. Assets and liabilities are translated into U.S. dollars at current exchange rates, while income and expenses are translated at average exchange rates. Translation gains and losses are reported in other comprehensive (loss) income in the statements of consolidated comprehensive income. Gains and losses resulting from transactions denominated in foreign currencies are included in the statements of consolidated income as a component of other (income) expense, net. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements. Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value. Marketable Securities The primary marketable security investments of the Company include money market and mutual funds held in a rabbi trust for a non-qualified deferred compensation plan. These are included in other assets in the consolidated balance sheets, are classified as trading securities, and are reported at fair value based on quoted market prices. Changes in the fair value of the investments during the period are recorded in other (income) expense, net in the statements of consolidated income. Concentration of Credit Risk The Company has a broad customer base representing many diverse industries across North America, Australia, New Zealand, and Singapore. As such, the Company does not believe that a significant concentration of credit risk exists in its accounts receivable. The Company’s cash and cash equivalents consist of deposits with commercial banks and regulated non-bank subsidiaries. While the Company monitors the creditworthiness of these institutions, a crisis in the financial systems could limit access to funds and/or result in the loss of principal. The terms of these deposits and investments provide that all monies are available to the Company upon demand. Allowances for Doubtful Accounts The Company evaluates the collectibility of trade accounts receivable based on a combination of factors. Initially, the Company estimates an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This initial estimate is adjusted based on recent trends of customers and industries estimated to be greater credit risks, trends within the entire customer pool, and changes in the overall aging of accounts receivable. Accounts are written off against the allowance when it becomes evident collection will not occur. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults, and therefore, the need to revise estimates for bad debts. Inventories Inventories are valued at the average cost method, using the last-in, first-out (LIFO) method for U.S. inventories and the average cost method for foreign inventories. The Company adopted the link chain dollar value LIFO method of accounting for U.S. inventories in fiscal 1974. At June 30, 2018 , approximately 16.8% of the Company’s domestic inventory dollars relate to LIFO layers added in the 1970s. The Company maintains five LIFO pools based on the following product groupings: bearings, power transmission products, rubber products, fluid power products and other products. LIFO layers and/or liquidations are determined consistently year-to-year. The Company evaluates the recoverability of its slow moving and inactive inventories at least quarterly. The Company estimates the recoverable cost of such inventory by product type while considering factors such as its age, historic and current demand trends, the physical condition of the inventory, as well as assumptions regarding future demand. The Company’s ability to recover its cost for slow moving or obsolete inventory can be affected by such factors as general market conditions, future customer demand, and relationships with suppliers. Historically, the Company’s inventories have demonstrated long shelf lives, are not highly susceptible to obsolescence, and, in certain instances, can be eligible for return under supplier return programs. Supplier Purchasing Programs The Company enters into agreements with certain suppliers providing inventory purchase incentives. The Company’s inventory purchase incentive arrangements are unique to each supplier and are generally annual programs ending at either the Company’s fiscal year end or the supplier’s year end; however, program length and ending dates can vary. Incentives are received in the form of cash or credits against purchases upon attainment of specified purchase volumes and are received either monthly, quarterly or annually. The incentives are generally a specified percentage of the Company’s net purchases based upon achieving specific purchasing volume levels. These percentages can increase or decrease based on changes in the volume of purchases. The Company accrues for the receipt of these inventory purchase incentives based upon cumulative purchases of inventory. The percentage level utilized is based upon the estimated total volume of purchases expected during the life of the program. Supplier programs are analyzed each quarter to determine the appropriateness of the amount of purchase incentives accrued. Upon program completion, differences between estimates and actual incentives subsequently received have not been material. Benefits under these supplier purchasing programs are recognized under the Company’s inventory accounting methods as a reduction of cost of sales when the inventories representing these purchases are recorded as cost of sales. Accrued incentives expected to be settled as a credit against future purchases are reported on the consolidated balance sheets as an offset to amounts due to the related supplier. Property and Related Depreciation and Amortization Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and is included in selling, distribution and administrative expenses in the accompanying statements of consolidated income. Buildings, building improvements and leasehold improvements are depreciated over ten to thirty years or the life of the lease if a shorter period, and equipment is depreciated over three to ten years. The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization of software begins when it is ready for its intended use, and is computed on a straight-line basis over the estimated useful life of the software, generally not to exceed twelve years. Capitalized software and hardware costs are classified as property on the consolidated balance sheets. The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the recorded value cannot be recovered from undiscounted future cash flows. Impairment losses, if any, would be measured based upon the difference between the carrying amount and the fair value of the assets. Goodwill and Intangible Assets Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized. Goodwill is reviewed for impairment annually as of January 1 or whenever changes in conditions indicate an evaluation should be completed. These conditions could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company utilizes discounted cash flow models and market multiples for comparable businesses to determine the fair value of reporting units. Evaluating impairment requires significant judgment by management, including estimated future operating results, estimated future cash flows, the long-term rate of growth of the business, and determination of an appropriate discount rate. While the Company uses available information to prepare the estimates and evaluations, actual results could differ significantly. The Company recognizes acquired identifiable intangible assets such as customer relationships, trade names, vendor relationships, and non-competition agreements apart from goodwill. Customer relationship identifiable intangibles are amortized using the sum-of-the-years-digits method or the expected cash flow method over estimated useful lives consistent with assumptions used in the determination of their value. Amortization of all other finite-lived identifiable intangible assets is computed using the straight-line method over the estimated period of benefit. Amortization of identifiable intangible assets is included in selling, distribution and administrative expense in the accompanying statements of consolidated income. Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable. Identifiable intangible assets with indefinite lives are reviewed for impairment on an annual basis or whenever changes in conditions indicate an evaluation should be completed. The Company does not currently have any indefinite-lived identifiable intangible assets. Self-Insurance Liabilities The Company maintains business insurance programs with significant self-insured retention covering workers’ compensation, business, automobile, general product liability and other claims. The Company accrues estimated losses including those incurred but not reported using actuarial calculations, models and assumptions based on historical loss experience. The Company also maintains a self-insured health benefits plan which provides medical benefits to U.S. based employees electing coverage under the plan. The Company estimates its reserve for all unpaid medical claims, including those incurred but not reported, based on historical experience, adjusted as necessary based upon management’s reasoned judgment. Revenue Recognition Sales are recognized when there is evidence of an arrangement, the sales price is fixed, collectibility is reasonably assured and the product’s title and risk of loss is transferred to the customer. Typically, these conditions are met when the product is shipped to the customer. The Company charges shipping and handling fees when products are shipped or delivered to a customer, and includes such amounts in net sales. The Company reports its sales net of actual sales returns and the amount of reserves established for anticipated sales returns based on historical rates. Sales tax collected from customers is excluded from net sales in the accompanying statements of consolidated income. Shipping and Handling Costs The Company records freight payments to third parties in cost of sales and internal delivery costs in selling, distribution and administrative expense in the accompanying statements of consolidated income. Internal delivery costs in selling, distribution and administrative expenses were approximately $19,320 , $20,060 and $21,480 for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively. Income Taxes Income taxes are determined based upon income and expenses recorded for financial reporting purposes. Deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes, giving consideration to enacted tax laws. Uncertain tax positions meeting a more-likely-than-not recognition threshold are recognized in accordance with Accounting Standards Codification ("ASC") Topic 740 - Income Taxes . The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in the provision for income taxes. Share-Based Compensation Share-based compensation represents the cost related to share-based awards granted to employees under the 2015 Long-Term Performance Plan, the 2011 Long-Term Performance Plan, or the 2007 Long-Term Performance Plan. The Company measures share-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost over the requisite service period. Non-qualified stock appreciation rights (SARs) and stock options are granted with an exercise price equal to the closing market price of the Company’s common stock at the date of grant and the fair values are determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. SARs and stock option awards generally vest over four years of continuous service and have ten -year contractual terms. The fair value of restricted stock awards, restricted stock units (RSUs), and performance shares are based on the closing market price of Company common stock on the grant date. Treasury Shares Shares of common stock repurchased by the Company are recorded at cost as treasury shares and result in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the weighted-average cost method for determining the cost of shares reissued. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital. Recently Adopted Accounting Guidance Change in Accounting Principle - Net Periodic and Post-retirement Benefit Costs In March 2017, the FASB issued its final standard on improving the presentation of net periodic pension and postretirement benefit costs. This standard, issued as ASU 2017-07, requires that an employer report the service cost component for defined benefit plans and postretirement plans in the same line item in the income statement as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This update is effective for annual financial statement periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company early adopted ASU 2017-07 in the first quarter of fiscal 2018. The impact of the adoption of this guidance resulted in the reclassification of the other components of net benefit cost from selling, distribution, and administrative expense to other (income) expense, net in the statements of consolidated income, resulting in an increase to operating income. There is no impact to income before income taxes, net income, or net income per share. Therefore, $143 , $155 , and $113 of service costs are included in selling, distribution and administrative expense, and $245 , $796 , and $981 of net other periodic post-employment costs are included in other (income) expense, net in the statements of consolidated income for the years ended June 30, 2018 , and 2017 , and 2016 , respectively. The Company used a practical expedient where the amounts disclosed in our Benefit Plans footnote for the prior year comparative periods were the basis for the estimation for applying the retrospective presentation requirements. Accumulated Other Comprehensive Income In January 2018, the FASB issued its final standard on reporting comprehensive income. The standard, issued as ASU 2018-02, allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company early adopted ASU 2018-02 in the fourth quarter of fiscal 2018 using the at the beginning of the period of adoption method. The impact of adoption was a reclassification of $471 from accumulated other comprehensive loss to retained earnings. Change in Accounting Principle - Simplifying the test for Goodwill Impairment In January 2017, the FASB issued its final standard on simplifying the test for goodwill impairment. This standard, issued as ASU 2017-04, eliminates step 2 from the goodwill impairment test and instead requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This update is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company early adopted ASU 2017-04 in the fourth quarter of fiscal 2018 and will apply this guidance prospectively to its annual and interim goodwill impairment tests. Recently Issued Accounting Guidance In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as ASU 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that "an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services." In August 2015, the FASB issued ASU 2015-14 to delay the effective date of ASU 2014-09 by one year. In accordance with the delay, the update is effective for financial statement periods beginning after December 15, 2017 and may be adopted either retrospectively or on a modified retrospective basis. Early adoption is permitted, but not before financial statement periods beginning after December 15, 2016. In March 2016 the FASB issued ASU 2016-08 and ASU 2016-10, and in May 2016 the FASB issued ASU 2016-12, which clarify the guidance in ASU 2014-09 but do not change the core principle of the revenue recognition model. The Company has evaluated the provisions of the new standard and is in the process of assessing its impact on financial statements, information systems, business processes, and financial statement disclosures. We have substantially completed an analysis of revenue streams at each of the business units and are evaluating the impact the new standard will have on revenue recognition. The Company primarily sells purchased products and recognizes revenue at point of sale or delivery and the majority of its revenue will continue to be recognized at a point in time under the new standard. A small percentage of revenue will be recognized using an over time revenue recognition model. The new standard will be adopted in the first quarter of fiscal 2019 using the modified retrospective method of adoption, and the Company will recognize the cumulative effect of initially applying the new standard as an adjustment to opening retained earnings as of July 1, 2018. The standard is not expected to have a material impact on the Company's consolidated financial statements, except for expanded disclosures on revenue in order to comply with the new guidance. The Company will continue to evaluate the impacts of the adoption of the standard and these assessments are subject to change. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. The core principle of this update is that a "lessee should recognize the assets and liabilities that arise from leases." This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has established a cross-functional team to evaluate the new standard and has begun implementing new lease administration software. The Company is still determining the financial impact that this standard update will have on its consolidated financial statements, but anticipates it will have a material impact on its assets and liabilities due to the addition of right-of-use assets and lease liabilities to the consolidated balance sheet. The Company will continue to evaluate the impacts of the adoption of the standard and these assessments are subject to change. In June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In August 2016, the FASB issued its final standard on the classification of certain cash receipts and cash payments within the statement of cash flows. This standard, issued as ASU 2016-15, makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This update is effective for annual and interim financial statement periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In October 2016, the FASB issued its final standard on the income tax consequences of intra-entity transfers of assets other than inventory. This standard, issued as ASU 2016-16, requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This update is effective for annual and interim financial statement periods beginning after December 15, 2017, with early adoption permitted. The Company will adopt this standard when it becomes effective in the first quarter of fiscal 2019, and it is not expected to have a material impact on the Company’s financial statements and related disclosures. In May 2017, the FASB issued its final standard on scope of modification accounting. This standard, issued as 2017-09, provides guidance about which change to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This update is effective for annual and interim financial statement periods beginning after December 15, 2017, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The operating results of all acquired entities are included within the consolidated operating results of the Company from the date of each respective acquisition. FCX Acquisition On January 31, 2018, the Company completed the acquisition of 100% of the outstanding shares of FCX Performance, Inc. ("FCX"), a Columbus, Ohio based distributor of specialty process flow control products and services. The total consideration transferred for the acquisition was $781,781 , which was financed by cash-on-hand and a new credit facility comprised of a $780,000 Term Loan A and a $250,000 revolver, effective with the transaction closing. See note 5 Debt. As a distributor of highly engineered valves, instruments, pumps and lifecycle services to MRO and OEM customers across diverse industrial and process end markets, this business will be included in the Fluid Power & Flow Control Segment. The following table summarizes the consideration transferred, assets acquired, and liabilities assumed in connection with the acquisition of FCX based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment. The purchase accounting will be finalized within one year from the acquisition date. FCX Acquisition 2018 Cash $ 11,141 Accounts receivable 80,836 Inventories 47,325 Other current assets 1,657 Property 8,282 Identifiable intangible assets 305,420 Goodwill 439,164 Other assets 775 Total assets acquired $ 894,600 Accounts payable and accrued liabilities 54,518 Other liabilities 2,677 Deferred tax liabilities 55,624 Net assets acquired $ 781,781 Purchase price $ 784,281 Reconciliation of fair value transferred: Working Capital Adjustments (2,500 ) Total Consideration $ 781,781 Goodwill acquired of $160,814 is expected to be deductible for income tax purposes. Net sales, operating income and net income from the FCX acquisition included in the Company’s results since January 31, 2018, the date of the acquisition, are as follows: January 31, 2018 to June 30, 2018 Net sales $ 249,752 Operating income 16,845 Net income 8,758 The company incurred $2,849 in third-party costs during 2018 pertaining to the acquisition of FCX, which are included in selling, distribution and administration expense in the statements of consolidated income for fiscal 2018 . The following unaudited pro forma consolidated results of operations have been prepared as if the FCX acquisition (including the related acquisition costs) had occurred at the beginning of fiscal 2017: Pro forma, year ended June 30: 2018 2017 Net sales $ 3,330,430 $ 2,943,583 Operating income 234,603 196,194 Net income 158,181 126,270 Diluted net income per share $ 4.03 $ 3.20 These pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results to reflect additional amortization that would have been recorded assuming the fair value adjustments to identified intangible assets had been applied as of July 1, 2016. In addition, pro forma adjustments have been made for the interest expense that would have been incurred as a result of the indebtedness used to finance the acquisitions. The pro forma net income amounts also incorporate an adjustment to the recorded income tax expense for the income tax effect of the pro forma adjustments described above. These pro forma results of operations do not include any anticipated synergies or other effects of the planned integration of FCX; accordingly, such pro forma adjustments do not purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred as of the date indicated or that may result in the future. Other Fiscal 2018 Acquisition On July 3, 2017, the Company acquired 100% of the outstanding stock of Dise ñ os, Construcciones y Fabricaciones Hispanoamericanas, S.A. ("DICOFASA"), a distributor of accessories and components for hydraulic systems and lubrication, located in Puebla, Mexico. DICOFASA is included in the Service Center Based Distribution segment. The purchase price for the acquisition was $5,920 , net tangible assets acquired were $3,395 , and goodwill was $2,525 based upon estimated fair values at the acquisition date. The purchase price includes $906 of acquisition holdback payments. Due to changes in foreign currency exchange rates, the balance of $842 is included in other current liabilities and other liabilities on the consolidated balance sheets as of June 30, 2018 , which will be paid on the first three anniversaries of the acquisition with interest at a fixed rate of 1.5% per annum. The Company funded this acquisition using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements. Fiscal 2017 Acquisition On March 3, 2017, the Company acquired substantially all of the net assets of Sentinel Fluid Controls ("Sentinel"), a distributor of hydraulic and lubrication components, systems and solutions operating from four locations. Sentinel is included in the Fluid Power & Flow Control segment. The purchase price for the acquisition was $3,755 , net tangible assets acquired were $3,130 , and goodwill was $625 based upon estimated fair values at the acquisition date. The purchase price included $982 of acquisition holdback payments, of which $328 and $175 were paid during fiscal years 2018 and 2017 , respectively. The remaining balance of $479 is included in other current liabilities and other liabilities on the consolidated balance sheets, which will be paid plus interest at various times in the future. The Company funded the amount paid for the acquisition at closing using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements. Fiscal 2016 Acquisitions On June 14, 2016, the Company acquired 100% of the outstanding stock of Seals Unlimited ("Seals"), a distributor of sealing, fastener, and hose products located in Burlington, Ontario. On January 4, 2016, the Company acquired substantially all of the net assets of HUB Industrial Supply ("HUB"), a distributor of consumable industrial products operating from three locations - Lake City, FL, Indianapolis, IN, and Las Vegas, NV. On August 3, 2015, the Company acquired substantially all of the net assets of Atlantic Fasteners Co., Inc. ("Atlantic Fasteners"), a distributor of C-Class consumables including industrial fasteners and related industrial supplies located in Agawam, MA. Seals, HUB, and Atlantic Fasteners are all included in the Service Center Based Distribution segment. On October 1, 2015, the Company acquired substantially all of the net assets of S.G. Morris Co. ("SGM"). SGM, headquartered in Cleveland, OH, is a distributor of hydraulic components throughout Ohio, Western Pennsylvania and West Virginia and is included in the Fluid Power & Flow Control segment. The total combined consideration for these acquisitions was approximately $65,900 , net tangible assets acquired were $22,700 , and intangibles including goodwill were $43,200 based upon estimated fair values at the acquisition dates. The total combined consideration includes $3,300 of acquisition holdback payments, of which $1,250 was paid during fiscal year 2017. The remaining balance of $2,050 is included in other current liabilities on the consolidated balance sheets, which will be paid plus interest in October 2018. The Company funded the amounts paid for the acquisitions at closing using available cash and borrowings under the revolving credit facility at variable interest rates. The acquisition prices and the results of operations for the acquired entities are not material in relation to the Company's consolidated financial statements. Holdback Liabilities for Acquisitions Acquisition holdback payments of approximately $2,592 , $283 , $415 and $75 will be made in fiscal 2019, 2020, 2021, and 2024, respectively. The related liabilities for these payments are recorded in the consolidated balance sheets in other current liabilities for the amounts due in fiscal year 2019 and other liabilities for the amounts due in fiscal years 2020 through 2024. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following: June 30, 2018 2017 U.S. inventories at average cost $ 443,521 $ 373,984 Foreign inventories at average cost 117,711 108,734 561,232 482,718 Less: Excess of average cost over LIFO cost for U.S. inventories 139,163 137,573 Inventories on consolidated balance sheets $ 422,069 $ 345,145 The overall impact of LIFO layer liquidations increased gross profit by $579 , $9,414 , and $2,100 in fiscal 2018 , fiscal 2017 , and fiscal 2016 , respectively. In fiscal 2017 , reductions in U.S. inventories, primarily in the bearings pool which included the scrapping of approximately $6,000 of product, resulted in liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Fluid Power & Flow Control segment for the years ended June 30, 2018 and 2017 are as follows: Service Center Based Distribution Fluid Power & Flow Control Total Balance at July 1, 2016 $ 198,486 $ 4,214 $ 202,700 Goodwill added during the year 3,220 625 3,845 Other, primarily currency translation 34 (444 ) (410 ) Balance at June 30, 2017 201,740 4,395 206,135 Goodwill added during the year 2,525 439,164 441,689 Other, primarily currency translation (1,181 ) — (1,181 ) Balance at June 30, 2018 $ 203,084 $ 443,559 $ 646,643 During the first quarter of fiscal 2017, the Company recorded an adjustment to the preliminary estimated fair value of intangible assets related to the HUB acquisition. The fair values of the customer relationships and trade names intangible assets were decreased by $2,636 and $584 , respectively, with a corresponding total increase to goodwill of $3,220 . The changes to the preliminary estimated fair values resulted in a decrease to amortization expense of $156 during fiscal 2017, which is recorded in selling, distribution and administrative expense in the statements of consolidated income. On July 1, 2016, the Company enacted a change in its management reporting structure which changed the composition of the Canada service center reporting unit. This triggering event required the Company to perform an interim goodwill impairment test for the Canada service center reporting unit. The Company performed step one of the goodwill impairment test for the Canada service center reporting unit as of July 1, 2016 and determined that the reporting unit had excess fair value of approximately $8,000 or 5% when compared to its carrying amount of approximately $163,000 . In conjunction with this management change, $2,628 of goodwill was reallocated from the Canada service center reporting unit to the U.S. service center reporting unit based on the relative fair value as of July 1, 2016. The Company has six ( 6 ) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2018. The Company concluded that all of the reporting units’ fair value exceeded their carrying amounts by at least 30% as of January 1, 2018. The fair values of the reporting units in accordance with the goodwill impairment test were determined using the Income and Market approaches. The Income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors. The Market approach utilizes an analysis of comparable publicly traded companies. The Company had seven ( 7 ) reporting units for which an annual goodwill impairment assessment was performed as of January 1, 2016. The Company concluded that five ( 5 ) of the reporting units’ fair value substantially exceeded their carrying amounts. The carrying value for two ( 2 ) reporting units (Canada service center and Australia/New Zealand service center) exceeded the fair value, indicating there may be goodwill impairment. The fair values of the reporting units in accordance with step one of the goodwill impairment test were determined using the Income and Market approaches. Step two of the goodwill impairment test compares the fair value of the reporting unit goodwill with the carrying amount of goodwill. The implied fair value of goodwill is determined in the same manner as in a business combination. The fair value of the reporting unit from step one is allocated to all of the assets and liabilities of the reporting unit, including unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit. Step two of the goodwill impairment test for the Canada service center reporting unit was completed in the third quarter of fiscal 2016. The analysis resulted in a goodwill impairment of $56,022 for the Canada service center reporting unit. The non-cash impairment charge was the result of the overall decline in the industrial economy in Canada coupled with the substantial and sustained decline in the oil and gas sector during calendar year 2015. This led to reduced spending by customers and reduced revenue expectations. The uncertainty regarding the oil and gas industries and overall industrial economy in Canada also led the reporting unit to reduce expectations. Step two of the goodwill impairment test for the Australia/New Zealand reporting unit was completed in the third quarter of fiscal 2016. The analysis concluded that all of the Australia/New Zealand reporting unit’s goodwill was impaired, and therefore the Company recorded a non-cash impairment expense of $8,772 in the third quarter of fiscal 2016. The impairment charge was primarily the result of the decline in the mining and extraction industries in Australia, reduced spending by customers, and the effects of reduced revenue expectations. The techniques used in the Company's impairment tests have incorporated a number of assumptions that the Company believes to be reasonable and to reflect known market conditions at the measurement dates. Assumptions in estimating future cash flows are subject to a degree of judgment. The Company makes all efforts to forecast future cash flows as accurately as possible with the information available at the measurement date. The Company evaluates the appropriateness of its assumptions and overall forecasts by comparing projected results of upcoming years with actual results of preceding years. Key Level 3 based assumptions relate to pricing trends, inventory costs, customer demand, and revenue growth. A number of benchmarks from independent industry and other economic publications were also used. Changes in future results, assumptions, and estimates after the measurement date may lead to an outcome where additional impairment charges would be required in future periods. Specifically, actual results may vary from the Company’s forecasts and such variations may be material and unfavorable, thereby triggering the need for future impairment tests where the conclusions may differ in reflection of prevailing market conditions. At June 30, 2018 and 2017 , accumulated goodwill impairment losses subsequent to fiscal year 2002 totaled $64,794 related to the Service Center Based Distribution segment and $36,605 related to the Fluid Power & Flow Control segment. The Company's identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: June 30, 2018 Amount Accumulated Amortization Net Book Value Finite-Lived Intangibles: Customer relationships $ 465,691 $ 125,009 $ 340,682 Trade names 112,939 22,454 90,485 Vendor relationships 11,425 7,382 4,043 Non-competition agreements 2,761 2,024 737 Total Intangibles $ 592,816 $ 156,869 $ 435,947 June 30, 2017 Amount Accumulated Amortization Net Book Value Finite-Lived Intangibles: Customer relationships $ 235,009 $ 102,414 $ 132,595 Trade names 43,873 19,295 24,578 Vendor relationships 14,152 9,141 5,011 Non-competition agreements 3,788 2,410 1,378 Total Intangibles $ 296,822 $ 133,260 $ 163,562 Amounts include the impact of foreign currency translation. Fully amortized amounts are written off. During 2018, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average Life Customer relationships $ 234,370 20.0 years Trade names 71,050 15.0 years Total Intangibles Acquired $ 305,420 18.8 years Amortization of identifiable intangibles totaled $32,065 , $24,371 and $ 25,580 in fiscal 2018 , 2017 and 2016 , respectively, and is included in selling, distribution and administrative expenses in the statements of consolidated income. Future amortization expense based on the Company’s identifiable intangible assets as of June 30, 2018 is estimated to be $44,000 for 2019 , $42,500 for 2020 , $40,200 for 2021 , $37,800 for 2022 and $35,300 for 2023 . |
Debt
Debt | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Credit Facility & Term Loan In January 2018, in conjunction with the acquisition of FCX, the Company refinanced its existing credit facility and entered into a new five-year credit facility with a group of banks expiring in January 2023 . This agreement provides for a $780,000 unsecured term loan and a $250,000 unsecured revolving credit facility. Fees on this facility range from 0.10% to 0.20% per year based upon the Company's leverage ratio at each quarter end. Borrowings under this agreement carry variable interest rates tied to either LIBOR or prime at the Company's discretion. At June 30, 2018 , the Company had $775,125 outstanding under the term loan and $19,500 outstanding under the revolver. Unused lines under this facility, net of outstanding letters of credit of $3,625 to secure certain insurance obligations, totaled $226,875 at June 30, 2018 , and were available to fund future acquisitions or other capital and operating requirements. The interest rate on the term loan as of June 30, 2018 was 4.13% . The weighted average interest rate on the amount outstanding under the revolving credit facility as of June 30, 2018 was 3.93% . The new credit facility replaced the Company's previous credit facility agreement. At June 30, 2017 , the Company had $120,313 outstanding under the term loan in the previous credit facility agreement, which carried a variable interest rate tied to LIBOR and was 2.25% as of June 30, 2017 . No amount was outstanding under the revolver as of June 30, 2017 . Unused lines under this facility, net of outstanding letters of credit of $2,441 to secure certain insurance obligations, totaled $247,559 at June 30, 2017 . Additionally, the Company had letters of credit outstanding with a separate bank, not associated with either revolving credit agreement, in the amount of $2,698 as of June 30, 2018 and June 30, 2017 , respectively, in order to secure certain insurance obligations. Other Long-Term Borrowings At June 30, 2018 and June 30, 2017 , the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $170,000 . Fees on this facility range from 0.25% to 1.25% per year based on the Company's leverage ratio at each quarter end. The "Series C" notes have a principal amount of $120,000 and carry a fixed interest rate of 3.19% , and are due in equal principal payments in July 2020, 2021, and 2022. The "Series D" notes have a principal amount of $50,000 , carry a fixed interest rate of 3.21% , and are due in equal principal payments in October 2019 and 2023. As of June 30, 2018 , $50,000 in additional financing was available under this facility. In 2014, the Company assumed $2,359 of debt as a part of the headquarters facility acquisition. The 1.50% fixed interest rate note is held by the State of Ohio Development Services Agency, maturing in May 2024. At June 30, 2018 and 2017 , $1,438 and $1,669 was outstanding, respectively. Unamortized debt issue costs of $551 and $105 are included as a reduction of current portion of long-term debt on the consolidated balance sheets as of June 30, 2018 and June 30, 2017 , respectively. Unamortized debt issue costs of $1,807 and $294 are included as a reduction of long-term debt on the consolidated balance sheets as of June 30, 2018 and June 30, 2017 , respectively. The table below summarizes the aggregate maturities of amounts outstanding under long-term borrowing arrangements for each of the next five years: Fiscal Year Aggregate Maturity 2019 $ 19,734 2020 49,613 2021 79,241 2022 84,120 2023 708,124 Thereafter 25,231 Covenants The new credit facility and the unsecured shelf facility contain restrictive covenants regarding liquidity, net worth, financial ratios, and other covenants. At June 30, 2018 , the most restrictive of these covenants required that the Company have net indebtedness less than 4.25 times consolidated income before interest, taxes, depreciation and amortization. At June 30, 2018 , the Company's indebtedness was less than 3.0 times consolidated income before interest, taxes, depreciation and amortization. The Company was in compliance with all financial covenants at June 30, 2018 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at June 30, 2018 and June 30, 2017 totaled $10,318 and $10,481 , respectively. The majority of these marketable securities are held in a rabbi trust for a non-qualified deferred compensation plan. The marketable securities are included in other assets on the consolidated balance sheets and their fair values were valued using quoted market prices (Level 1 in the fair value hierarchy). As of June 30, 2018 , the carrying value of the Company's fixed interest rate debt outstanding under its unsecured shelf facility agreement with Prudential Investment Management approximates fair value (Level 2 in the fair value hierarchy). The revolving credit facility and the term loan contain variable interest rates and their carrying values approximate fair value (Level 2 in the fair value hierarchy). |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Before Income Taxes The components of income before income taxes are as follows: Year Ended June 30, 2018 2017 2016 U.S. $ 186,874 $ 154,472 $ 139,960 Foreign 17,844 12,494 (60,982 ) Income before income taxes $ 204,718 $ 166,966 $ 78,978 Provision The provision (benefit) for income taxes consists of: Year Ended June 30, 2018 2017 2016 Current: Federal $ 48,131 $ 26,456 $ 45,226 State and local 8,038 4,692 6,349 Foreign 5,309 4,760 4,407 Total current 61,478 35,908 55,982 Deferred: Federal 5,955 852 397 State and local (586 ) 535 (30 ) Foreign (3,754 ) (4,239 ) (6,948 ) Total deferred 1,615 (2,852 ) (6,581 ) Total $ 63,093 $ 33,056 $ 49,401 On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was enacted in the U.S., making significant changes to U.S. tax law. The Act reduces the U.S. federal corporate income tax rate from 35% to 21% , requires companies to pay a one-time transition tax on certain un-remitted earnings of foreign subsidiaries that were previously tax deferred, generally eliminates U.S. federal income tax on dividends from foreign subsidiaries, and creates new taxes on certain foreign-sourced earnings. During fiscal 2018, the Company revised its estimated annual effective tax rate to reflect the change in the federal statutory rate from 35% to 21% . The rate change was administratively effective as of the beginning of our fiscal year, resulting in the Company using a blended statutory rate for the annual period of 28.06% . The corporate income tax rate change had a favorable impact to the Company of $12,113 for fiscal 2018. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Act for which the accounting under ASC 740 is incomplete. To the extent that a company's accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Act. Accordingly, as of June 30, 2018 we have not completed our accounting for the tax effects of the Act. For fiscal 2018, we recognized a provisional tax liability of $3,877 related to the one-time transition tax on certain un-remitted earnings of foreign subsidiaries, which is payable over eight years. We also re-measured the applicable deferred tax assets and liabilities based on the rates at which they are expected to reverse. The Company recorded a provisional amount of $2,414 of additional deferred income tax expense related to the re-measurement of our deferred tax balance. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. Overall, considering the decrease in the corporate income tax rate and the expense related to the transition tax and deferred tax re-measurement, the Act resulted in a net tax benefit of $5,822 for fiscal 2018, which is included as a component of income tax expense in the statements of consolidated income. During the fourth quarter of fiscal 2017, the Company recorded a net tax benefit of $22,246 pertaining to a worthless stock deduction. The tax benefit of this deduction was based on the write-off of the Company's investment in one of its Canadian subsidiaries for U.S. tax purposes reduced by $1,019 of tax provided for a valuation allowance applicable to the related state deferred income tax asset. The exercise of non-qualified stock appreciation rights and options during fiscal 2018 , 2017 and 2016 resulted in $419 , $1,921 and $212 , respectively, of income tax benefits to the Company derived from the difference between the market and option price of the shares at the date of exercise and the fair value of the options on the grant date. Vesting of stock awards and other stock compensation in fiscal 2018 , 2017 and 2016 resulted in $430 , $482 and $(4) , respectively, of incremental income tax benefits (expense) over the amounts previously reported for financial reporting purposes. Due to the adoption of ASU 2016-09 in fiscal 2017, the tax benefits for fiscal 2018 and 2017 were recorded in income tax expense in the statements of consolidated income, while the fiscal 2016 tax expense was recorded in additional paid-in capital. Effective Tax Rates The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate: Year Ended June 30, 2018 2017 2016 Statutory income tax rate 28.1 % 35.0 % 35.0 % Effects of: State and local taxes 3.1 2.8 5.2 U.S. federal tax reform 3.1 — — Worthless stock deduction — (13.9 ) — Stock compensation (0.4 ) (1.4 ) — Goodwill impairment — — 27.1 Impact of foreign operations (1.3 ) (2.3 ) (3.0 ) Deductible dividend (0.3 ) (0.4 ) (0.9 ) Valuation allowance (0.9 ) 0.3 0.5 Other, net (0.6 ) (0.3 ) (1.3 ) Effective income tax rate 30.8 % 19.8 % 62.6 % Consolidated Balance Sheets Significant components of the Company’s deferred tax assets and liabilities are as follows: June 30, 2018 2017 Deferred tax assets: Compensation liabilities not currently deductible $ 19,334 $ 26,873 Other expenses and reserves not currently deductible 13,169 11,601 Goodwill and intangibles 3,197 5,661 Foreign tax credit (expiring in years 2025-2026) 413 709 Net operating loss carryforwards (expiring in years 2023-2038) 11,315 5,729 Other 199 119 Total deferred tax assets 47,627 50,692 Less: Valuation allowance (38 ) (1,831 ) Deferred tax assets, net of valuation allowance 47,589 48,861 Deferred tax liabilities: Inventories (8,196 ) (7,447 ) Goodwill and intangibles (86,176 ) (30,482 ) Depreciation and differences in property bases (9,294 ) (10,122 ) Total deferred tax liabilities (103,666 ) (48,051 ) Net deferred tax (liabilities) assets $ (56,077 ) $ 810 Net deferred tax (liabilities) assets are classified as follows: Other assets $ 2,103 $ 8,985 Other liabilities (58,180 ) (8,175 ) Net deferred tax (liabilities) assets $ (56,077 ) $ 810 Valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the Company will not realize the benefit of such assets. The remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized. The realization of these deferred tax assets can be impacted by changes to tax laws, statutory rates and future income levels. As a result of the Act, the Company’s net unremitted foreign earnings of $77,374 have been subject to U.S. taxation. As of June 30, 2018 , all such undistributed earnings of non-U.S. subsidiaries are considered permanently reinvested. Therefore, no taxes have been provided that would result from the remittance of such earnings. The net amount of the unrecognized tax liability with respect to the distribution of these earnings is estimated to be approximately $1,986 . In addition, we expect foreign tax credits would be available to either offset or partially reduce the tax cost in the event of a distribution. Unrecognized Income Tax Benefits The Company and its subsidiaries file income tax returns in U.S. federal, various state, local and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2018 , 2017 and 2016 : Year Ended June 30, 2018 2017 2016 Unrecognized Income Tax Benefits at beginning of the year $ 3,533 $ 2,915 $ 2,604 Current year tax positions 143 574 539 Prior year tax positions 636 259 — Expirations of statutes of limitations (324 ) (189 ) (132 ) Settlements — (26 ) (96 ) Unrecognized Income Tax Benefits at end of year $ 3,988 $ 3,533 $ 2,915 Included in the balance of unrecognized income tax benefits at June 30, 2018 , 2017 and 2016 are $3,725 , $3,323 and $2,691 , respectively, of income tax benefits that, if recognized, would affect the effective income tax rate. During 2018 , 2017 and 2016 , the Company recognized $(110) and $163 and $127 of (benefit) expense, respectively, for interest and penalties related to unrecognized income tax benefits in its statements of consolidated income. The Company had a liability for penalties and interest of $677 and $787 as of June 30, 2018 and 2017 , respectively. The Company does not anticipate a significant change to the total amount of unrecognized income tax benefits within the next twelve months. The Company is subject to U.S. federal income tax examinations for the tax years 2015 through 2018 and to state and local income tax examinations for the tax years 2012 through 2018. In addition, the Company is subject to foreign income tax examinations for the tax years 2011 through 2018. The Company’s unrecognized income tax benefits are included in other liabilities in the consolidated balance sheets since payment of cash is not expected within one year. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Treasury Shares At June 30, 2018 , 596 shares of the Company’s common stock held as treasury shares were restricted as collateral under escrow arrangements relating to change in control and director and officer indemnification agreements. Accumulated Other Comprehensive Income (Loss) Changes in the accumulated other comprehensive income (loss) for the years ended June 30, 2018 , 2017 , and 2016 , are comprised of the following amounts, shown net of taxes: Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Post-employment benefits Total accumulated other comprehensive (loss) income Balance at July 1, 2015 $ (57,244 ) $ (4 ) $ (2,923 ) $ (60,171 ) Other comprehensive loss (24,441 ) (34 ) (1,215 ) (25,690 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 315 315 Net current-period other comprehensive loss (24,441 ) (34 ) (900 ) (25,375 ) Balance at June 30, 2016 (81,685 ) (38 ) (3,823 ) (85,546 ) Other comprehensive income 2,238 59 1,239 3,536 Amounts reclassified from accumulated other comprehensive income (loss) — — 308 308 Net current-period other comprehensive income 2,238 59 1,547 3,844 Balance at June 30, 2017 (79,447 ) 21 (2,276 ) (81,702 ) Other comprehensive (loss) income (8,549 ) 20 524 (8,005 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (45 ) (45 ) Amounts reclassified for certain income tax effects to retained earnings 22 9 (502 ) (471 ) Net current-period other comprehensive (loss) income (8,527 ) 29 (23 ) (8,521 ) Balance at June 30, 2018 $ (87,974 ) $ 50 $ (2,299 ) $ (90,223 ) Other Comprehensive Income (Loss) Details of other comprehensive income (loss) are as follows: Year Ended June 30, 2018 2017 2016 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax (Benefit) Expense Net Amount Foreign currency translation adjustments $ (8,875 ) $ (326 ) $ (8,549 ) $ 2,238 $ — $ 2,238 $ (24,441 ) $ — $ (24,441 ) Post-employment benefits: Actuarial gain (loss) on re-measurement 709 185 524 2,038 799 1,239 (1,998 ) (783 ) (1,215 ) Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs (73 ) (28 ) (45 ) 506 198 308 518 203 315 Unrealized gain (loss) on investment securities available for sale 37 17 20 91 32 59 (52 ) (18 ) (34 ) Reclassification of certain income tax effects to retained earnings — 471 (471 ) — — — — — — Other comprehensive (loss) income $ (8,202 ) $ 319 $ (8,521 ) $ 4,873 $ 1,029 $ 3,844 $ (25,973 ) $ (598 ) $ (25,375 ) Net Income Per Share Basic net income per share is based on the weighted-average number of common shares outstanding. Diluted net income per share includes the dilutive effect of potential common shares outstanding. Under the two-class method of computing net income per share, non-vested share-based payment awards that contain rights to receive non-forfeitable dividends are considered participating securities. The Company’s participating securities include Restricted Stock Units ("RSUs") and restricted stock awards. The Company calculated basic and diluted net income per share under both the treasury stock method and the two-class method. For the years presented there were no material differences in the net income per share amounts calculated using the two methods. Accordingly, the treasury stock method is disclosed below. The following table presents amounts used in computing net income per share and the effect on the weighted-average number of shares of dilutive potential common shares: Year Ended June 30, 2018 2017 2016 Net Income $ 141,625 $ 133,910 $ 29,577 Average Shares Outstanding: Weighted-average common shares outstanding for basic computation 38,752 39,013 39,254 Dilutive effect of potential common shares 529 391 212 Weighted-average common shares outstanding for dilutive computation 39,281 39,404 39,466 Net Income Per Share — Basic $ 3.65 $ 3.43 $ 0.75 Net Income Per Share — Diluted $ 3.61 $ 3.40 $ 0.75 Stock appreciation rights and options relating to 66 , 141 and 775 shares of common stock were outstanding at June 30, 2018 , 2017 and 2016 , respectively, but were not included in the computation of diluted earnings per share for the fiscal years then ended as they were anti-dilutive. |
Share - Based Compensation
Share - Based Compensation | 12 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Incentive Plans Following approval by the Company's shareholders in October 2015, the 2015 Long-Term Performance Plan (the "2015 Plan") replaced the 2011 Long-Term Performance Plan. The 2015 Plan, which expires in 2020, provides for granting of SARs, stock options, stock awards, cash awards, and such other awards or combination thereof as the Executive Organization and Compensation Committee or, in the case of director awards, the Corporate Governance Committee of the Board of Directors (together referred to as the Committee) may determine to officers, other key employees and members of the Board of Directors. Grants are generally made at regularly scheduled committee meetings. Compensation costs charged to expense under award programs paid (or to be paid) with shares (including SARs, stock options, performance shares, restricted stock, and RSUs) are summarized in the table below: Year Ended June 30, 2018 2017 2016 SARs and options $ 1,961 $ 1,891 $ 1,543 Performance shares 2,006 1,331 446 Restricted stock and RSUs 2,660 2,298 2,078 Total compensation costs under award programs $ 6,627 $ 5,520 $ 4,067 Such amounts are included in selling, distribution and administrative expense in the accompanying statements of consolidated income. The total income tax benefit recognized in the statements of consolidated income for share-based compensation plans was $1,923 , $4,848 and $1,595 for fiscal years 2018 , 2017 and 2016 , respectively. It has been the practice of the Company to issue shares from treasury to satisfy requirements of awards paid with shares. The aggregate unrecognized compensation cost for share-based award programs with the potential to be paid at June 30, 2018 are summarized in the table below: June 30, 2018 Average Expected Period of Expected Recognition (Years) SARs and options $ 3,729 2.5 Performance shares 3,282 1.7 Restricted stock and RSUs 2,173 1.9 Total unrecognized compensation costs under award programs $ 9,184 2.1 Cost of these programs will be recognized as expense over the weighted-average remaining vesting period of 2.1 years. The aggregate number of shares of common stock which may be awarded under the 2015 Plan is 2,500 ; shares available for future grants at June 30, 2018 were 1,655 . Stock Appreciation Rights and Stock Options The weighted-average assumptions used for SARs and stock option grants issued in fiscal 2018 , 2017 2016 are: 2018 2017 2016 Expected life, in years 6.0 4.8 4.4 Risk free interest rate 2.1 % 1.2 % 1.3 % Dividend yield 2.5 % 2.5 % 2.5 % Volatility 24.3 % 24.1 % 26.0 % Per share fair value of SARs and stock options granted during the year $11.25 $7.97 $6.79 The expected life is based upon historical exercise experience of the officers, other key employees and members of the Board of Directors. The risk free interest rate is based upon U.S. Treasury zero-coupon bonds with remaining terms equal to the expected life of the SARs and stock options. The assumed dividend yield has been estimated based upon the Company’s historical results and expectations for changes in dividends and stock prices. The volatility assumption is calculated based upon historical daily price observations of the Company’s common stock for a period equal to the expected life. SARs are redeemable solely in Company common stock. The exercise price of stock option awards may be settled by the holder with cash or by tendering Company common stock. A summary of SARs and stock options activity is presented below : Shares Weighted-Average Exercise Price Year Ended June 30, 2018 (Shares in thousands) Outstanding, beginning of year 1,218 $ 42.26 Granted 286 58.40 Exercised (58 ) 37.55 Forfeited (45 ) 55.64 Outstanding, end of year 1,401 $ 45.32 Exercisable at end of year 789 $ 41.08 Expected to vest at end of year 1,379 $ 45.22 The weighted-average remaining contractual terms for SARs and stock options outstanding, exercisable, and expected to vest at June 30, 2018 were 6.6 , 5.3 , and 6.6 years, respectively. The aggregate intrinsic values of SARs and stock options outstanding, exercisable, and expected to vest at June 30, 2018 were $34,869 $22,927 , and $34,440 , respectively. The aggregate intrinsic value of the SARs and stock options exercised during fiscal 2018 , 2017 , and 2016 was $1,765 , $8,396 , and $2,422 , respectively. The total fair value of shares vested during fiscal 2018 , 2017 , and 2016 was $2,149 , $1,788 , and $1,291 , respectively. Performance Shares Performance shares are paid in shares of Applied stock at the end of a three -year period provided the Company achieves goals established by the committee. The number of Applied shares payable will vary depending on the level of the goals achieved. A summary of nonvested performance shares activity at June 30, 2018 is presented below: Shares Weighted-Average Grant-Date Fair Value Year Ended June 30, 2018 (Shares in thousands) Nonvested, beginning of year 52 $ 43.99 Awarded 51 47.13 Vested (10 ) 48.76 Nonvested, end of year 93 $ 45.16 The Committee set three one -year goals for each of the 2018, 2017 and 2016 grants. Each fiscal year during the three-year term has its own separate goals, tied to the Company’s earnings before interest, tax, depreciation, and amortization (EBITDA) and after-tax return on assets (ROA). Achievement during any particular fiscal year is awarded and “banked” for payout at the end of the three-year term. For the outstanding grants as of June 30, 2018 , the maximum number of shares which could be earned in future periods was 67 . Restricted Stock and Restricted Stock Units Restricted stock award recipients are entitled to receive dividends on, and have voting rights with respect to their respective shares, but are restricted from selling or transferring the shares prior to vesting. Restricted stock awards vest over periods of one to four years. RSUs are grants valued in shares of Applied stock, but shares are not issued until the grants vest three to four years from the award date, assuming continued employment with Applied. Applied primarily pays dividend equivalents on RSUs on a current basis. A summary of the status of the Company’s non-vested restricted stock and RSUs at June 30, 2018 is presented below: Shares Weighted-Average Grant-Date Fair Value Year Ended June 30, 2018 (Share amounts in thousands) Nonvested, beginning of year 116 $ 46.91 Granted 53 62.62 Forfeitures (10 ) 54.96 Vested (43 ) 52.58 Nonvested, end of year 116 $ 51.27 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits, Description [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Retirement Savings Plan Substantially all U.S. employees participate in the Applied Industrial Technologies, Inc. Retirement Savings Plan. Participants may elect 401(k) contributions of up to 50% of their compensation, subject to Internal Revenue Code maximums. The Company partially matches 401(k) contributions by participants. The Company’s expense for matching of employees’ 401(k) contributions was $6,551 , $6,677 and $2,535 during 2018 , 2017 and 2016 , respectively. Deferred Compensation Plans The Company has deferred compensation plans that enable certain employees of the Company to defer receipt of a portion of their compensation. Assets held in these rabbi trusts consist of investments in money market and mutual funds and Company common stock. Post-employment Benefit Plans The Company provides the following post-employment benefits which, except for the Qualified Defined Benefit Retirement Plan and Key Executive Restoration Plan, are unfunded: Supplemental Executive Retirement Benefits Plan The Company has a non-qualified pension plan to provide supplemental retirement benefits to certain officers. Benefits are payable and determinable at retirement based upon a percentage of the participant’s historical compensation. The Executive Organization and Compensation Committee of the Board of Directors froze participant benefits (credited service and final average earnings) and entry into the Supplemental Executive Retirement Benefits Plan (SERP) effective December 31, 2011. Key Executive Restoration Plan In fiscal 2012, the Company adopted the Key Executive Restoration Plan (KERP), a funded, non-qualified deferred compensation plan, to replace the SERP. The Company recorded $359 , $289 , and $268 of expense associated with this plan in fiscal 2018, 2017, and 2016, respectively. Qualified Defined Benefit Retirement Plan The Company has a qualified defined benefit retirement plan that provides benefits to certain hourly employees at retirement. These employees do not participate in the Retirement Savings Plan. The benefits are based on length of service and date of retirement. The plan accruals were frozen as of April 16, 2018 and employees are now permitted to participate in the Retirement Savings Plan subsequent to April 16, 2018. Salary Continuation Benefits The Company has agreements with certain retirees of acquired companies to pay monthly retirement benefits through fiscal 2020. Retiree Health Care Benefits The Company provides health care benefits, through third-party policies, to eligible retired employees who pay a specified monthly premium. Premium payments are based upon current insurance rates for the type of coverage provided and are adjusted annually. Certain monthly health care premium payments are partially subsidized by the Company. Additionally, in conjunction with a fiscal 1998 acquisition, the Company assumed the obligation for a post-retirement medical benefit plan which provides health care benefits to eligible retired employees at no cost to the individual. The Company uses a June 30 measurement date for all plans. The following table sets forth the changes in benefit obligations and plan assets during the year and the funded status for the post-employment plans at June 30: Pension Benefits Retiree Health Care Benefits 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of the year $ 24,411 $ 26,605 $ 1,684 $ 2,235 Service cost 124 126 19 29 Interest cost 729 687 52 63 Plan participants’ contributions — — 68 69 Benefits paid (3,181 ) (1,562 ) (223 ) (237 ) Amendments — — — (245 ) Actuarial gain during year (549 ) (1,445 ) (109 ) (230 ) Benefit obligation at end of year $ 21,534 $ 24,411 $ 1,491 $ 1,684 Change in plan assets: Fair value of plan assets at beginning of year $ 6,530 $ 6,737 $ — $ — Actual gain on plan assets 516 578 — — Employer contributions 3,837 776 155 168 Plan participants’ contributions — — 68 69 Benefits paid (3,181 ) (1,561 ) (223 ) (237 ) Fair value of plan assets at end of year $ 7,702 $ 6,530 $ — $ — Funded status at end of year $ (13,832 ) $ (17,881 ) $ (1,491 ) $ (1,684 ) The amounts recognized in the consolidated balance sheets and in accumulated other comprehensive loss for the post-employment plans were as follows: Pension Benefits Retiree Health Care Benefits June 30, 2018 2017 2018 2017 Amounts recognized in the consolidated balance sheets: Other current liabilities $ 3,298 $ 2,814 $ 220 $ 220 Post-employment benefits 10,534 15,067 1,271 1,464 Net amount recognized $ 13,832 $ 17,881 $ 1,491 $ 1,684 Amounts recognized in accumulated other comprehensive loss: Net actuarial (loss) gain $ (4,781 ) $ (5,798 ) $ 1,121 $ 1,167 Prior service cost — (35 ) 554 922 Total amounts recognized in accumulated other comprehensive loss $ (4,781 ) $ (5,833 ) $ 1,675 $ 2,089 The following table provides information for pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets: Pension Benefits June 30, 2018 2017 Projected benefit obligations $ 21,534 $ 24,411 Accumulated benefit obligations 21,534 24,411 Fair value of plan assets 7,702 6,530 The net periodic costs (benefits) are as follows: Pension Benefits Retiree Health Care Benefits Year Ended June 30, 2018 2017 2016 2018 2017 2016 Service cost $ 124 $ 126 $ 91 $ 19 $ 29 $ 22 Interest cost 729 687 879 52 63 75 Expected return on plan assets (472 ) (460 ) (491 ) — — — Recognized net actuarial loss (gain) 424 872 913 (154 ) (181 ) (210 ) Amortization of prior service cost 27 86 86 (369 ) (271 ) (271 ) Recognition of prior service cost upon plan curtailment 8 — — — — — Net periodic cost (benefits) $ 840 $ 1,311 $ 1,478 $ (452 ) $ (360 ) $ (384 ) In accordance with the Company's adoption of ASU 2017-07, the Company reports the service cost component of the net periodic post-employment costs in the same line item in the income statement as other compensation costs arising from services rendered by the employees during the period. The other components of net periodic post-employment costs are presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Therefore, $143 , $155 , and $113 of service costs are included in selling, distribution and administrative expense, and $245 , $796 , and $981 of net other periodic post-employment costs are included in other (income) expense, net in the statements of consolidated income for the years ended June 30, 2018 , 2017 , and 2016 , respectively. The estimated net actuarial loss for the pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $185 . The estimated net actuarial gain and income from prior service cost for the retiree health care benefits that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $121 and $369 , respectively. Assumptions A discount rate is used to determine the present value of future payments. In general, the Company’s liability increases as the discount rate decreases and decreases as the discount rate increases. The Company computes a weighted-average discount rate taking into account anticipated plan payments and the associated interest rates from the Citigroup Pension Discount Yield Curve and the Findley Discount Curve. During fiscal 2015, the Society of Actuaries released a series of updated mortality tables resulting from recent studies measuring mortality rates for various groups of individuals. As of June 30, 2015, the Company adopted these mortality tables, which reflect improved trends in longevity and have the effect of increasing the estimate of benefits to be received by plan participants. The weighted-average actuarial assumptions used to determine benefit obligations and net periodic benefit cost for the plans were as follows: Pension Benefits Retiree Health Care Benefits June 30, 2018 2017 2018 2017 Assumptions used to determine benefit obligations at year end: Discount rate 3.5 % 2.8 % 3.8 % 3.3 % Assumptions used to determine net periodic benefit cost: Discount rate 2.8 % 2.3 % 3.3 % 2.9 % Expected return on plan assets 7.0 % 7.0 % N/A N/A The assumed health care cost trend rates used in measuring the accumulated benefit obligation for retiree health care benefits were 7.0% as of June 30, 2018 and 2017 , respectively, decreasing to 5.0% by 2027. A one-percentage point change in the assumed health care cost trend rates would have had the following effects as of June 30, 2018 and for the year then ended: One-Percentage Point Increase Decrease Effect on total service and interest cost components of periodic expense $ 9 $ (8 ) Effect on post-retirement benefit obligation 152 (130 ) Plan Assets The fair value of each major class of plan assets for the Company’s Qualified Defined Benefit Retirement Plan is valued using either quoted market prices in active markets for identical instruments; Level 1 in the fair value hierarchy, or other inputs that are observable, either directly or indirectly; Level 2 in the fair value hierarchy. Following are the fair values and target allocation as of June 30: Target Allocation Fair Value 2018 2017 Asset Class: Equity* securities (Level 1) 40 – 70% $ 6,226 $ 3,880 Debt securities (Level 2) 20 – 50% 1,337 2,538 Other (Level 1) 0 – 20% 139 112 Total 100% $ 7,702 $ 6,530 * Equity securities do not include any Company common stock. The Company has established an investment policy and regularly monitors the performance of the assets of the trust maintained in conjunction with the Qualified Defined Benefit Retirement Plan. The strategy implemented by the trustee of the Qualified Defined Benefit Retirement Plan is to achieve long-term objectives and invest the pension assets in accordance with ERISA and fiduciary standards. The long-term primary objectives are to provide for a reasonable amount of long-term capital, without undue exposure to risk; to protect the Qualified Defined Benefit Retirement Plan assets from erosion of purchasing power; and to provide investment results that meet or exceed the actuarially assumed long-term rate of return. The expected long-term rate of return on assets assumption was developed by considering the historical returns and the future expectations for returns of each asset class as well as the target asset allocation of the pension portfolio. Cash Flows Employer Contributions The Company expects to contribute $3,300 to its pension benefit plans and $130 to its retiree health care benefit plans in fiscal 2019. Contributions do not equal estimated future benefit payments as certain payments are made from plan assets . Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as applicable, are expected to be paid in each of the next five years and in the aggregate for the subsequent five years: During Fiscal Years Pension Benefits Retiree Health Care Benefits 2019 $ 3,700 $ 130 2020 3,800 120 2021 1,300 110 2022 1,300 110 2023 1,400 100 2024 through 2028 5,200 530 |
Leases
Leases | 12 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases many service center and distribution center facilities, vehicles and equipment under non-cancelable lease agreements accounted for as operating leases. The minimum annual rental commitments under non-cancelable operating leases as of June 30, 2018 are as follows: During Fiscal Years 2019 $ 38,100 2020 27,500 2021 17,800 2022 11,200 2023 5,800 Thereafter 11,000 Total minimum lease payments $ 111,400 Rental expense incurred for operating leases, principally from leases for real property, vehicles and computer equipment was $41,000 in 2018 , $35,900 in 2017 and $37,300 in 2016 , and was classified within selling, distribution and administrative expenses in the statements of consolidated income. The Company maintains lease agreements for many of the operating facilities of businesses it acquires from previous owners. In many cases, the previous owners of the business acquired become employees of Applied and occupy management positions within those businesses. The payments under lease agreements of this nature totaled $ 2,400 , $2,400 , and $3,800 and in 2018 , 2017 , and 2016 , respectively. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Effective July 1, 2017, the Company completed a number of changes to its organizational structure that resulted in a change in how the Company manages its businesses, allocates resources and measures performance. As a result, the Company has revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. All Canadian and Mexican subsidiaries are now grouped under the Service Center Based Distribution segment. All prior-period amounts have been adjusted to reflect the reportable segment change. The Company's reportable segments are: Service Center Based Distribution and Fluid Power & Flow Control. These reportable segments contain the Company's various operating segments which have been aggregated based upon similar economic and operating characteristics. The Service Center Based Distribution segment provides customers with solutions to their maintenance, repair and original equipment manufacturing needs through the distribution of industrial products including bearings, power transmission components, fluid power components and systems, industrial rubber products, linear motion products, tools, safety products, and other industrial and maintenance supplies. The Fluid Power & Flow Control segment distributes engineered fluid power components and specialty flow control solutions and operates shops that assemble fluid power systems and components, performs equipment repair, and offers technical advice to customers. The accounting policies of the Company’s reportable segments are generally the same as those described in note 1. Intercompany sales, primarily from the Fluid Power & Flow Control segment to the Service Center Based Distribution segment of $25,556 , $22,719 , and $20,261 , in 2018 , 2017 , and 2016 , respectively, have been eliminated in the following table. Segment Financial Information Service Center Based Distribution Fluid Power & Flow Control Total Year Ended June 30, 2018 Net sales $ 2,346,418 $ 726,856 $ 3,073,274 Operating income for reportable segments 136,718 83,194 219,912 Assets used in the business 1,198,296 1,087,445 2,285,741 Depreciation and amortization of property 15,336 2,462 17,798 Capital expenditures 18,492 4,738 23,230 Year Ended June 30, 2017 Net sales $ 2,180,358 $ 413,388 $ 2,593,746 Operating income for reportable segments 115,794 46,569 162,363 Assets used in the business 1,187,054 200,541 1,387,595 Depreciation and amortization of property 14,375 931 15,306 Capital expenditures 14,566 2,479 17,045 Year Ended June 30, 2016 Net sales $ 2,150,478 $ 368,950 $ 2,519,428 Operating income for reportable segments 113,111 37,174 150,285 Assets used in the business 1,132,222 179,803 1,312,025 Depreciation and amortization of property 15,049 917 15,966 Capital expenditures 12,500 630 13,130 ERP related assets are included in assets used in the business and capital expenditures within the Service Center Based Distribution segment. Within the geographic disclosures, these assets are included in the United States. Expenses associated with the ERP are included in the Corporate and other income, net, line in the reconciliation of operating income for reportable segments to the consolidated income before income taxes table below. A reconciliation of operating income for reportable segments to the consolidated income before income taxes Year Ended June 30, 2018 2017 2016 Operating income for reportable segments $ 219,912 $ 162,363 $ 150,285 Adjustments for: Intangible amortization — Service Center Based Distribution 17,375 18,954 19,913 Intangible amortization — Fluid Power & Flow Control 14,690 5,417 5,667 Goodwill Impairment — Service Center Based Distribution — — 64,794 Corporate and other income, net (37,980 ) (37,394 ) (29,871 ) Total operating income 225,827 175,386 89,782 Interest expense, net 23,485 8,541 8,763 Other (income) expense, net (2,376 ) (121 ) 2,041 Income before income taxes $ 204,718 $ 166,966 $ 78,978 Fluctuations in corporate and other income, net, are due to changes in corporate expenses, as well as in the amounts and levels of certain supplier support benefits and expenses being allocated to the segments. The expenses being allocated include corporate charges for working capital, logistics support and other items. Product Category Net sales by product category are as follows: Year Ended June 30, 2018 2017 2016 Industrial $ 2,085,571 $ 1,855,437 $ 1,836,484 Fluid power & flow control 987,703 738,309 682,944 Net sales $ 3,073,274 $ 2,593,746 $ 2,519,428 The fluid power & flow control product category includes sales of hydraulic, pneumatic, lubrication, filtration, and flow control components and systems, and repair services through the Company’s Fluid Power & Flow Control segment as well as the Service Center Based Distribution segment. Geographic Information Net sales are presented in geographic areas based on the location of the facility shipping the product. Long-lived assets are based on physical locations and are comprised of the net book value of property and intangible assets. Information by geographic area is as follows: Year Ended June 30, 2018 2017 2016 Net Sales: United States $ 2,615,041 $ 2,182,552 $ 2,117,485 Canada 273,622 251,999 257,797 Other Countries 184,611 159,195 144,146 Total $ 3,073,274 $ 2,593,746 $ 2,519,428 June 30, 2018 2017 2016 Long-Lived Assets: United States $ 501,373 $ 207,126 $ 225,538 Canada 50,261 57,947 66,304 Other Countries 5,656 6,558 7,163 Total $ 557,290 $ 271,631 $ 299,005 Other countries consist of Mexico, Australia, New Zealand, and Singapore. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is a party to various pending judicial and administrative proceedings. Based on circumstances currently known, the Company believes the likelihood is remote that the ultimate resolution of any of these matters will have, either individually or in the aggregate, a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET Other (income) expense, net, consists of the following: Year Ended June 30, 2018 2017 2016 Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan $ (785 ) $ (1,188 ) $ (87 ) Foreign currency transaction (gains) losses (210 ) 209 1,039 Net other periodic post-employment costs 245 796 981 Life insurance (income) expense, net (1,628 ) 107 108 Other, net 2 (45 ) — Total other (income) expense, net $ (2,376 ) $ (121 ) $ 2,041 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | APPLIED INDUSTRIAL TECHNOLOGIES, INC. & SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED JUNE 30, 2018, 2017, AND 2016 (in thousands) COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E DESCRIPTION Balance at Beginning of Period Additions Charged to Cost and Expenses Additions (Deductions) Charged to Other Accounts Deductions from Reserve Balance at End of Period Year Ended June 30, 2018 Reserve deducted from assets to which it applies — accounts receivable allowances $ 9,628 $ 2,803 $ 4,578 (A) $ 3,443 (B) $ 13,566 Year Ended June 30, 2017 Reserve deducted from assets to which it applies — accounts receivable allowances $ 11,034 $ 2,071 $ (133 ) (A) $ 3,344 (B) $ 9,628 Year Ended June 30, 2016 Reserve deducted from assets to which it applies — accounts receivable allowances $ 10,621 $ 4,303 $ (46 ) (A) $ 3,844 (B) $ 11,034 (A) Amounts in the year ending June 30, 2018 represent reserves recorded through purchase accounting for acquisitions made during the year of $3,549 and for the return of merchandise by customers of $1,029. Amounts in prior fiscal years represent reserves for the return of merchandise by customers. (B) Amounts represent uncollectible accounts charged off. |
Business and Accounting Polic24
Business and Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business | Business Applied Industrial Technologies, Inc. and subsidiaries (the “Company” or “Applied”) is a leading distributor of bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, and other industrial supplies, serving Maintenance Repair & Operations (MRO) and Original Equipment Manufacturer (OEM) customers in virtually every industry. In addition, Applied provides engineering, design and systems integration for industrial, fluid power, and flow control applications, as well as customized mechanical, fabricated rubber, fluid power, and flow control shop services. Applied also offers storeroom services and inventory management solutions that provide added value to its customers. Although the Company does not generally manufacture the products it sells, it does assemble and repair certain products and systems. |
Consolidation | Consolidation The consolidated financial statements include the accounts of Applied Industrial Technologies, Inc. and its subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. |
Foreign Currency | Foreign Currency The financial statements of the Company’s Canadian, Mexican, Australian and New Zealand subsidiaries are measured using local currencies as their functional currencies. Assets and liabilities are translated into U.S. dollars at current exchange rates, while income and expenses are translated at average exchange rates. Translation gains and losses are reported in other comprehensive (loss) income in the statements of consolidated comprehensive income. Gains and losses resulting from transactions denominated in foreign currencies are included in the statements of consolidated income as a component of other (income) expense, net. |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the period. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are carried at cost, which approximates fair value. |
Marketable Securities | Marketable Securities The primary marketable security investments of the Company include money market and mutual funds held in a rabbi trust for a non-qualified deferred compensation plan. These are included in other assets in the consolidated balance sheets, are classified as trading securities, and are reported at fair value based on quoted market prices. Changes in the fair value of the investments during the period are recorded in other (income) expense, net in the statements of consolidated income. |
Concentration of Credit Risk | Concentration of Credit Risk The Company has a broad customer base representing many diverse industries across North America, Australia, New Zealand, and Singapore. As such, the Company does not believe that a significant concentration of credit risk exists in its accounts receivable. The Company’s cash and cash equivalents consist of deposits with commercial banks and regulated non-bank subsidiaries. While the Company monitors the creditworthiness of these institutions, a crisis in the financial systems could limit access to funds and/or result in the loss of principal. The terms of these deposits and investments provide that all monies are available to the Company upon demand. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts The Company evaluates the collectibility of trade accounts receivable based on a combination of factors. Initially, the Company estimates an allowance for doubtful accounts as a percentage of net sales based on historical bad debt experience. This initial estimate is adjusted based on recent trends of customers and industries estimated to be greater credit risks, trends within the entire customer pool, and changes in the overall aging of accounts receivable. Accounts are written off against the allowance when it becomes evident collection will not occur. While the Company has a large customer base that is geographically dispersed, a general economic downturn in any of the industry segments in which the Company operates could result in higher than expected defaults, and therefore, the need to revise estimates for bad debts. |
Inventories | Inventories Inventories are valued at the average cost method, using the last-in, first-out (LIFO) method for U.S. inventories and the average cost method for foreign inventories. The Company adopted the link chain dollar value LIFO method of accounting for U.S. inventories in fiscal 1974. At June 30, 2018 , approximately 16.8% of the Company’s domestic inventory dollars relate to LIFO layers added in the 1970s. The Company maintains five LIFO pools based on the following product groupings: bearings, power transmission products, rubber products, fluid power products and other products. LIFO layers and/or liquidations are determined consistently year-to-year. The Company evaluates the recoverability of its slow moving and inactive inventories at least quarterly. The Company estimates the recoverable cost of such inventory by product type while considering factors such as its age, historic and current demand trends, the physical condition of the inventory, as well as assumptions regarding future demand. The Company’s ability to recover its cost for slow moving or obsolete inventory can be affected by such factors as general market conditions, future customer demand, and relationships with suppliers. Historically, the Company’s inventories have demonstrated long shelf lives, are not highly susceptible to obsolescence, and, in certain instances, can be eligible for return under supplier return programs. |
Supplier Purchasing Programs | Supplier Purchasing Programs The Company enters into agreements with certain suppliers providing inventory purchase incentives. The Company’s inventory purchase incentive arrangements are unique to each supplier and are generally annual programs ending at either the Company’s fiscal year end or the supplier’s year end; however, program length and ending dates can vary. Incentives are received in the form of cash or credits against purchases upon attainment of specified purchase volumes and are received either monthly, quarterly or annually. The incentives are generally a specified percentage of the Company’s net purchases based upon achieving specific purchasing volume levels. These percentages can increase or decrease based on changes in the volume of purchases. The Company accrues for the receipt of these inventory purchase incentives based upon cumulative purchases of inventory. The percentage level utilized is based upon the estimated total volume of purchases expected during the life of the program. Supplier programs are analyzed each quarter to determine the appropriateness of the amount of purchase incentives accrued. Upon program completion, differences between estimates and actual incentives subsequently received have not been material. Benefits under these supplier purchasing programs are recognized under the Company’s inventory accounting methods as a reduction of cost of sales when the inventories representing these purchases are recorded as cost of sales. Accrued incentives expected to be settled as a credit against future purchases are reported on the consolidated balance sheets as an offset to amounts due to the related supplier. |
Property and related Depreciation and Amortization | Property and Related Depreciation and Amortization Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets and is included in selling, distribution and administrative expenses in the accompanying statements of consolidated income. Buildings, building improvements and leasehold improvements are depreciated over ten to thirty years or the life of the lease if a shorter period, and equipment is depreciated over three to ten years. The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization of software begins when it is ready for its intended use, and is computed on a straight-line basis over the estimated useful life of the software, generally not to exceed twelve years. Capitalized software and hardware costs are classified as property on the consolidated balance sheets. The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the recorded value cannot be recovered from undiscounted future cash flows. Impairment losses, if any, would be measured based upon the difference between the carrying amount and the fair value of the assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is recognized as the excess cost of an acquired entity over the net amount assigned to assets acquired and liabilities assumed. Goodwill is not amortized. Goodwill is reviewed for impairment annually as of January 1 or whenever changes in conditions indicate an evaluation should be completed. These conditions could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. The Company utilizes discounted cash flow models and market multiples for comparable businesses to determine the fair value of reporting units. Evaluating impairment requires significant judgment by management, including estimated future operating results, estimated future cash flows, the long-term rate of growth of the business, and determination of an appropriate discount rate. While the Company uses available information to prepare the estimates and evaluations, actual results could differ significantly. The Company recognizes acquired identifiable intangible assets such as customer relationships, trade names, vendor relationships, and non-competition agreements apart from goodwill. Customer relationship identifiable intangibles are amortized using the sum-of-the-years-digits method or the expected cash flow method over estimated useful lives consistent with assumptions used in the determination of their value. Amortization of all other finite-lived identifiable intangible assets is computed using the straight-line method over the estimated period of benefit. Amortization of identifiable intangible assets is included in selling, distribution and administrative expense in the accompanying statements of consolidated income. Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable. Identifiable intangible assets with indefinite lives are reviewed for impairment on an annual basis or whenever changes in conditions indicate an evaluation should be completed. The Company does not currently have any indefinite-lived identifiable intangible assets. |
Self-Insurance Liabilities | Self-Insurance Liabilities The Company maintains business insurance programs with significant self-insured retention covering workers’ compensation, business, automobile, general product liability and other claims. The Company accrues estimated losses including those incurred but not reported using actuarial calculations, models and assumptions based on historical loss experience. The Company also maintains a self-insured health benefits plan which provides medical benefits to U.S. based employees electing coverage under the plan. The Company estimates its reserve for all unpaid medical claims, including those incurred but not reported, based on historical experience, adjusted as necessary based upon management’s reasoned judgment. |
Revenue Recognition | Revenue Recognition Sales are recognized when there is evidence of an arrangement, the sales price is fixed, collectibility is reasonably assured and the product’s title and risk of loss is transferred to the customer. Typically, these conditions are met when the product is shipped to the customer. The Company charges shipping and handling fees when products are shipped or delivered to a customer, and includes such amounts in net sales. The Company reports its sales net of actual sales returns and the amount of reserves established for anticipated sales returns based on historical rates. Sales tax collected from customers is excluded from net sales in the accompanying statements of consolidated income. |
Shipping and Handling Costs | Shipping and Handling Costs The Company records freight payments to third parties in cost of sales and internal delivery costs in selling, distribution and administrative expense in the accompanying statements of consolidated income. Internal delivery costs in selling, distribution and administrative expenses were approximately $19,320 , $20,060 and $21,480 for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively. |
Income Taxes | Income Taxes Income taxes are determined based upon income and expenses recorded for financial reporting purposes. Deferred income taxes are recorded for estimated future tax effects of differences between the bases of assets and liabilities for financial reporting and income tax purposes, giving consideration to enacted tax laws. Uncertain tax positions meeting a more-likely-than-not recognition threshold are recognized in accordance with Accounting Standards Codification ("ASC") Topic 740 - Income Taxes . The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in the provision for income taxes. |
Share-Based Compensation | Share-Based Compensation Share-based compensation represents the cost related to share-based awards granted to employees under the 2015 Long-Term Performance Plan, the 2011 Long-Term Performance Plan, or the 2007 Long-Term Performance Plan. The Company measures share-based compensation cost at the grant date, based on the estimated fair value of the award and recognizes the cost over the requisite service period. Non-qualified stock appreciation rights (SARs) and stock options are granted with an exercise price equal to the closing market price of the Company’s common stock at the date of grant and the fair values are determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. SARs and stock option awards generally vest over four years of continuous service and have ten -year contractual terms. The fair value of restricted stock awards, restricted stock units (RSUs), and performance shares are based on the closing market price of Company common stock on the grant date. |
Treasury Shares | Treasury Shares Shares of common stock repurchased by the Company are recorded at cost as treasury shares and result in a reduction of shareholders’ equity in the consolidated balance sheets. The Company uses the weighted-average cost method for determining the cost of shares reissued. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Change in Accounting Principle - Net Periodic and Post-retirement Benefit Costs In March 2017, the FASB issued its final standard on improving the presentation of net periodic pension and postretirement benefit costs. This standard, issued as ASU 2017-07, requires that an employer report the service cost component for defined benefit plans and postretirement plans in the same line item in the income statement as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This update is effective for annual financial statement periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company early adopted ASU 2017-07 in the first quarter of fiscal 2018. The impact of the adoption of this guidance resulted in the reclassification of the other components of net benefit cost from selling, distribution, and administrative expense to other (income) expense, net in the statements of consolidated income, resulting in an increase to operating income. There is no impact to income before income taxes, net income, or net income per share. Therefore, $143 , $155 , and $113 of service costs are included in selling, distribution and administrative expense, and $245 , $796 , and $981 of net other periodic post-employment costs are included in other (income) expense, net in the statements of consolidated income for the years ended June 30, 2018 , and 2017 , and 2016 , respectively. The Company used a practical expedient where the amounts disclosed in our Benefit Plans footnote for the prior year comparative periods were the basis for the estimation for applying the retrospective presentation requirements. Accumulated Other Comprehensive Income In January 2018, the FASB issued its final standard on reporting comprehensive income. The standard, issued as ASU 2018-02, allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company early adopted ASU 2018-02 in the fourth quarter of fiscal 2018 using the at the beginning of the period of adoption method. The impact of adoption was a reclassification of $471 from accumulated other comprehensive loss to retained earnings. Change in Accounting Principle - Simplifying the test for Goodwill Impairment In January 2017, the FASB issued its final standard on simplifying the test for goodwill impairment. This standard, issued as ASU 2017-04, eliminates step 2 from the goodwill impairment test and instead requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. This update is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company early adopted ASU 2017-04 in the fourth quarter of fiscal 2018 and will apply this guidance prospectively to its annual and interim goodwill impairment tests. |
New Accounting Pronouncements | Recently Issued Accounting Guidance In May 2014, the FASB issued its final standard on the recognition of revenue from contracts with customers. The standard, issued as ASU 2014-09, outlines a single comprehensive model for entities to use in the accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. The core principle of this model is that "an entity recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services." In August 2015, the FASB issued ASU 2015-14 to delay the effective date of ASU 2014-09 by one year. In accordance with the delay, the update is effective for financial statement periods beginning after December 15, 2017 and may be adopted either retrospectively or on a modified retrospective basis. Early adoption is permitted, but not before financial statement periods beginning after December 15, 2016. In March 2016 the FASB issued ASU 2016-08 and ASU 2016-10, and in May 2016 the FASB issued ASU 2016-12, which clarify the guidance in ASU 2014-09 but do not change the core principle of the revenue recognition model. The Company has evaluated the provisions of the new standard and is in the process of assessing its impact on financial statements, information systems, business processes, and financial statement disclosures. We have substantially completed an analysis of revenue streams at each of the business units and are evaluating the impact the new standard will have on revenue recognition. The Company primarily sells purchased products and recognizes revenue at point of sale or delivery and the majority of its revenue will continue to be recognized at a point in time under the new standard. A small percentage of revenue will be recognized using an over time revenue recognition model. The new standard will be adopted in the first quarter of fiscal 2019 using the modified retrospective method of adoption, and the Company will recognize the cumulative effect of initially applying the new standard as an adjustment to opening retained earnings as of July 1, 2018. The standard is not expected to have a material impact on the Company's consolidated financial statements, except for expanded disclosures on revenue in order to comply with the new guidance. The Company will continue to evaluate the impacts of the adoption of the standard and these assessments are subject to change. In February 2016, the FASB issued its final standard on accounting for leases. This standard, issued as ASU 2016-02, requires that an entity that is a lessee recognize lease assets and lease liabilities on the balance sheet for all leases and disclose key information about leasing arrangements. The core principle of this update is that a "lessee should recognize the assets and liabilities that arise from leases." This update is effective for financial statement periods beginning after December 15, 2018, with earlier application permitted. The Company has established a cross-functional team to evaluate the new standard and has begun implementing new lease administration software. The Company is still determining the financial impact that this standard update will have on its consolidated financial statements, but anticipates it will have a material impact on its assets and liabilities due to the addition of right-of-use assets and lease liabilities to the consolidated balance sheet. The Company will continue to evaluate the impacts of the adoption of the standard and these assessments are subject to change. In June 2016, the FASB issued its final standard on measurement of credit losses on financial instruments. This standard, issued as ASU 2016-13, requires that an entity measure impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This update is effective for financial statement periods beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In August 2016, the FASB issued its final standard on the classification of certain cash receipts and cash payments within the statement of cash flows. This standard, issued as ASU 2016-15, makes a number of changes meant to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. This update is effective for annual and interim financial statement periods beginning after December 15, 2018, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. In October 2016, the FASB issued its final standard on the income tax consequences of intra-entity transfers of assets other than inventory. This standard, issued as ASU 2016-16, requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This update is effective for annual and interim financial statement periods beginning after December 15, 2017, with early adoption permitted. The Company will adopt this standard when it becomes effective in the first quarter of fiscal 2019, and it is not expected to have a material impact on the Company’s financial statements and related disclosures. In May 2017, the FASB issued its final standard on scope of modification accounting. This standard, issued as 2017-09, provides guidance about which change to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This update is effective for annual and interim financial statement periods beginning after December 15, 2017, with early adoption permitted. The Company has not yet determined the impact of this pronouncement on its financial statements and related disclosures. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the consideration transferred, assets acquired, and liabilities assumed in connection with the acquisition of FCX based on their preliminary estimated fair values at the acquisition date, which are subject to adjustment. The purchase accounting will be finalized within one year from the acquisition date. FCX Acquisition 2018 Cash $ 11,141 Accounts receivable 80,836 Inventories 47,325 Other current assets 1,657 Property 8,282 Identifiable intangible assets 305,420 Goodwill 439,164 Other assets 775 Total assets acquired $ 894,600 Accounts payable and accrued liabilities 54,518 Other liabilities 2,677 Deferred tax liabilities 55,624 Net assets acquired $ 781,781 Purchase price $ 784,281 Reconciliation of fair value transferred: Working Capital Adjustments (2,500 ) Total Consideration $ 781,781 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Net sales, operating income and net income from the FCX acquisition included in the Company’s results since January 31, 2018, the date of the acquisition, are as follows: January 31, 2018 to June 30, 2018 Net sales $ 249,752 Operating income 16,845 Net income 8,758 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma consolidated results of operations have been prepared as if the FCX acquisition (including the related acquisition costs) had occurred at the beginning of fiscal 2017: Pro forma, year ended June 30: 2018 2017 Net sales $ 3,330,430 $ 2,943,583 Operating income 234,603 196,194 Net income 158,181 126,270 Diluted net income per share $ 4.03 $ 3.20 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Items of Inventories | Inventories consist of the following: June 30, 2018 2017 U.S. inventories at average cost $ 443,521 $ 373,984 Foreign inventories at average cost 117,711 108,734 561,232 482,718 Less: Excess of average cost over LIFO cost for U.S. inventories 139,163 137,573 Inventories on consolidated balance sheets $ 422,069 $ 345,145 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Fluid Power & Flow Control segment for the years ended June 30, 2018 and 2017 are as follows: Service Center Based Distribution Fluid Power & Flow Control Total Balance at July 1, 2016 $ 198,486 $ 4,214 $ 202,700 Goodwill added during the year 3,220 625 3,845 Other, primarily currency translation 34 (444 ) (410 ) Balance at June 30, 2017 201,740 4,395 206,135 Goodwill added during the year 2,525 439,164 441,689 Other, primarily currency translation (1,181 ) — (1,181 ) Balance at June 30, 2018 $ 203,084 $ 443,559 $ 646,643 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The Company's identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: June 30, 2018 Amount Accumulated Amortization Net Book Value Finite-Lived Intangibles: Customer relationships $ 465,691 $ 125,009 $ 340,682 Trade names 112,939 22,454 90,485 Vendor relationships 11,425 7,382 4,043 Non-competition agreements 2,761 2,024 737 Total Intangibles $ 592,816 $ 156,869 $ 435,947 June 30, 2017 Amount Accumulated Amortization Net Book Value Finite-Lived Intangibles: Customer relationships $ 235,009 $ 102,414 $ 132,595 Trade names 43,873 19,295 24,578 Vendor relationships 14,152 9,141 5,011 Non-competition agreements 3,788 2,410 1,378 Total Intangibles $ 296,822 $ 133,260 $ 163,562 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | During 2018, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average Life Customer relationships $ 234,370 20.0 years Trade names 71,050 15.0 years Total Intangibles Acquired $ 305,420 18.8 years |
Debt Debt (Tables)
Debt Debt (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The table below summarizes the aggregate maturities of amounts outstanding under long-term borrowing arrangements for each of the next five years: Fiscal Year Aggregate Maturity 2019 $ 19,734 2020 49,613 2021 79,241 2022 84,120 2023 708,124 Thereafter 25,231 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of income before income taxes | The components of income before income taxes are as follows: Year Ended June 30, 2018 2017 2016 U.S. $ 186,874 $ 154,472 $ 139,960 Foreign 17,844 12,494 (60,982 ) Income before income taxes $ 204,718 $ 166,966 $ 78,978 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes consists of: Year Ended June 30, 2018 2017 2016 Current: Federal $ 48,131 $ 26,456 $ 45,226 State and local 8,038 4,692 6,349 Foreign 5,309 4,760 4,407 Total current 61,478 35,908 55,982 Deferred: Federal 5,955 852 397 State and local (586 ) 535 (30 ) Foreign (3,754 ) (4,239 ) (6,948 ) Total deferred 1,615 (2,852 ) (6,581 ) Total $ 63,093 $ 33,056 $ 49,401 |
Reconciliations of federal statutory income tax rate and Company's effective income tax rate | The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate: Year Ended June 30, 2018 2017 2016 Statutory income tax rate 28.1 % 35.0 % 35.0 % Effects of: State and local taxes 3.1 2.8 5.2 U.S. federal tax reform 3.1 — — Worthless stock deduction — (13.9 ) — Stock compensation (0.4 ) (1.4 ) — Goodwill impairment — — 27.1 Impact of foreign operations (1.3 ) (2.3 ) (3.0 ) Deductible dividend (0.3 ) (0.4 ) (0.9 ) Valuation allowance (0.9 ) 0.3 0.5 Other, net (0.6 ) (0.3 ) (1.3 ) Effective income tax rate 30.8 % 19.8 % 62.6 % |
Components of the Company's net deferred tax assets | Significant components of the Company’s deferred tax assets and liabilities are as follows: June 30, 2018 2017 Deferred tax assets: Compensation liabilities not currently deductible $ 19,334 $ 26,873 Other expenses and reserves not currently deductible 13,169 11,601 Goodwill and intangibles 3,197 5,661 Foreign tax credit (expiring in years 2025-2026) 413 709 Net operating loss carryforwards (expiring in years 2023-2038) 11,315 5,729 Other 199 119 Total deferred tax assets 47,627 50,692 Less: Valuation allowance (38 ) (1,831 ) Deferred tax assets, net of valuation allowance 47,589 48,861 Deferred tax liabilities: Inventories (8,196 ) (7,447 ) Goodwill and intangibles (86,176 ) (30,482 ) Depreciation and differences in property bases (9,294 ) (10,122 ) Total deferred tax liabilities (103,666 ) (48,051 ) Net deferred tax (liabilities) assets $ (56,077 ) $ 810 Net deferred tax (liabilities) assets are classified as follows: Other assets $ 2,103 $ 8,985 Other liabilities (58,180 ) (8,175 ) Net deferred tax (liabilities) assets $ (56,077 ) $ 810 |
Reconciliation of the Company's total gross unrecognized income tax benefits | The Company and its subsidiaries file income tax returns in U.S. federal, various state, local and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2018 , 2017 and 2016 : Year Ended June 30, 2018 2017 2016 Unrecognized Income Tax Benefits at beginning of the year $ 3,533 $ 2,915 $ 2,604 Current year tax positions 143 574 539 Prior year tax positions 636 259 — Expirations of statutes of limitations (324 ) (189 ) (132 ) Settlements — (26 ) (96 ) Unrecognized Income Tax Benefits at end of year $ 3,988 $ 3,533 $ 2,915 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Changes in the accumulated other comprehensive income (loss) for the years ended June 30, 2018 , 2017 , and 2016 , are comprised of the following amounts, shown net of taxes: Foreign currency translation adjustment Unrealized (loss) gain on securities available for sale Post-employment benefits Total accumulated other comprehensive (loss) income Balance at July 1, 2015 $ (57,244 ) $ (4 ) $ (2,923 ) $ (60,171 ) Other comprehensive loss (24,441 ) (34 ) (1,215 ) (25,690 ) Amounts reclassified from accumulated other comprehensive income (loss) — — 315 315 Net current-period other comprehensive loss (24,441 ) (34 ) (900 ) (25,375 ) Balance at June 30, 2016 (81,685 ) (38 ) (3,823 ) (85,546 ) Other comprehensive income 2,238 59 1,239 3,536 Amounts reclassified from accumulated other comprehensive income (loss) — — 308 308 Net current-period other comprehensive income 2,238 59 1,547 3,844 Balance at June 30, 2017 (79,447 ) 21 (2,276 ) (81,702 ) Other comprehensive (loss) income (8,549 ) 20 524 (8,005 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (45 ) (45 ) Amounts reclassified for certain income tax effects to retained earnings 22 9 (502 ) (471 ) Net current-period other comprehensive (loss) income (8,527 ) 29 (23 ) (8,521 ) Balance at June 30, 2018 $ (87,974 ) $ 50 $ (2,299 ) $ (90,223 ) |
Schedule of Comprehensive Income (Loss) | Details of other comprehensive income (loss) are as follows: Year Ended June 30, 2018 2017 2016 Pre-Tax Amount Tax Expense (Benefit) Net Amount Pre-Tax Amount Tax Expense Net Amount Pre-Tax Amount Tax (Benefit) Expense Net Amount Foreign currency translation adjustments $ (8,875 ) $ (326 ) $ (8,549 ) $ 2,238 $ — $ 2,238 $ (24,441 ) $ — $ (24,441 ) Post-employment benefits: Actuarial gain (loss) on re-measurement 709 185 524 2,038 799 1,239 (1,998 ) (783 ) (1,215 ) Reclassification of actuarial losses and prior service cost into SD&A expense and included in net periodic pension costs (73 ) (28 ) (45 ) 506 198 308 518 203 315 Unrealized gain (loss) on investment securities available for sale 37 17 20 91 32 59 (52 ) (18 ) (34 ) Reclassification of certain income tax effects to retained earnings — 471 (471 ) — — — — — — Other comprehensive (loss) income $ (8,202 ) $ 319 $ (8,521 ) $ 4,873 $ 1,029 $ 3,844 $ (25,973 ) $ (598 ) $ (25,375 ) |
Computation of basic and diluted earnings per share | Year Ended June 30, 2018 2017 2016 Net Income $ 141,625 $ 133,910 $ 29,577 Average Shares Outstanding: Weighted-average common shares outstanding for basic computation 38,752 39,013 39,254 Dilutive effect of potential common shares 529 391 212 Weighted-average common shares outstanding for dilutive computation 39,281 39,404 39,466 Net Income Per Share — Basic $ 3.65 $ 3.43 $ 0.75 Net Income Per Share — Diluted $ 3.61 $ 3.40 $ 0.75 |
Share - Based Compensation (Tab
Share - Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of share based compensation expense | The 2015 Plan, which expires in 2020, provides for granting of SARs, stock options, stock awards, cash awards, and such other awards or combination thereof as the Executive Organization and Compensation Committee or, in the case of director awards, the Corporate Governance Committee of the Board of Directors (together referred to as the Committee) may determine to officers, other key employees and members of the Board of Directors. Grants are generally made at regularly scheduled committee meetings. Compensation costs charged to expense under award programs paid (or to be paid) with shares (including SARs, stock options, performance shares, restricted stock, and RSUs) are summarized in the table below: Year Ended June 30, 2018 2017 2016 SARs and options $ 1,961 $ 1,891 $ 1,543 Performance shares 2,006 1,331 446 Restricted stock and RSUs 2,660 2,298 2,078 Total compensation costs under award programs $ 6,627 $ 5,520 $ 4,067 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The aggregate unrecognized compensation cost for share-based award programs with the potential to be paid at June 30, 2018 are summarized in the table below: June 30, 2018 Average Expected Period of Expected Recognition (Years) SARs and options $ 3,729 2.5 Performance shares 3,282 1.7 Restricted stock and RSUs 2,173 1.9 Total unrecognized compensation costs under award programs $ 9,184 2.1 |
Weighted-average assumptions used for SARs and stock option grants issued | The weighted-average assumptions used for SARs and stock option grants issued in fiscal 2018 , 2017 2016 are: 2018 2017 2016 Expected life, in years 6.0 4.8 4.4 Risk free interest rate 2.1 % 1.2 % 1.3 % Dividend yield 2.5 % 2.5 % 2.5 % Volatility 24.3 % 24.1 % 26.0 % Per share fair value of SARs and stock options granted during the year $11.25 $7.97 $6.79 |
Summary of SARs and stock option activity | A summary of SARs and stock options activity is presented below : Shares Weighted-Average Exercise Price Year Ended June 30, 2018 (Shares in thousands) Outstanding, beginning of year 1,218 $ 42.26 Granted 286 58.40 Exercised (58 ) 37.55 Forfeited (45 ) 55.64 Outstanding, end of year 1,401 $ 45.32 Exercisable at end of year 789 $ 41.08 Expected to vest at end of year 1,379 $ 45.22 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the performance shares and restricted stock activity | A summary of nonvested performance shares activity at June 30, 2018 is presented below: Shares Weighted-Average Grant-Date Fair Value Year Ended June 30, 2018 (Shares in thousands) Nonvested, beginning of year 52 $ 43.99 Awarded 51 47.13 Vested (10 ) 48.76 Nonvested, end of year 93 $ 45.16 |
Restricted stock and Restricted Stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the performance shares and restricted stock activity | A summary of the status of the Company’s non-vested restricted stock and RSUs at June 30, 2018 is presented below: Shares Weighted-Average Grant-Date Fair Value Year Ended June 30, 2018 (Share amounts in thousands) Nonvested, beginning of year 116 $ 46.91 Granted 53 62.62 Forfeitures (10 ) 54.96 Vested (43 ) 52.58 Nonvested, end of year 116 $ 51.27 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits, Description [Abstract] | |
Summary of changes in benefit obligations, plan assets and funded status for the post employment plans | The following table sets forth the changes in benefit obligations and plan assets during the year and the funded status for the post-employment plans at June 30: Pension Benefits Retiree Health Care Benefits 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of the year $ 24,411 $ 26,605 $ 1,684 $ 2,235 Service cost 124 126 19 29 Interest cost 729 687 52 63 Plan participants’ contributions — — 68 69 Benefits paid (3,181 ) (1,562 ) (223 ) (237 ) Amendments — — — (245 ) Actuarial gain during year (549 ) (1,445 ) (109 ) (230 ) Benefit obligation at end of year $ 21,534 $ 24,411 $ 1,491 $ 1,684 Change in plan assets: Fair value of plan assets at beginning of year $ 6,530 $ 6,737 $ — $ — Actual gain on plan assets 516 578 — — Employer contributions 3,837 776 155 168 Plan participants’ contributions — — 68 69 Benefits paid (3,181 ) (1,561 ) (223 ) (237 ) Fair value of plan assets at end of year $ 7,702 $ 6,530 $ — $ — Funded status at end of year $ (13,832 ) $ (17,881 ) $ (1,491 ) $ (1,684 ) |
Amounts Recognized in Consolidated Balance Sheet [Table Text Block] | The amounts recognized in the consolidated balance sheets and in accumulated other comprehensive loss for the post-employment plans were as follows: Pension Benefits Retiree Health Care Benefits June 30, 2018 2017 2018 2017 Amounts recognized in the consolidated balance sheets: Other current liabilities $ 3,298 $ 2,814 $ 220 $ 220 Post-employment benefits 10,534 15,067 1,271 1,464 Net amount recognized $ 13,832 $ 17,881 $ 1,491 $ 1,684 Amounts recognized in accumulated other comprehensive loss: Net actuarial (loss) gain $ (4,781 ) $ (5,798 ) $ 1,121 $ 1,167 Prior service cost — (35 ) 554 922 Total amounts recognized in accumulated other comprehensive loss $ (4,781 ) $ (5,833 ) $ 1,675 $ 2,089 |
Information for pension plans with projected benefit obligations in excess of plan assets | The following table provides information for pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets: Pension Benefits June 30, 2018 2017 Projected benefit obligations $ 21,534 $ 24,411 Accumulated benefit obligations 21,534 24,411 Fair value of plan assets 7,702 6,530 |
Net periodic costs | The net periodic costs (benefits) are as follows: Pension Benefits Retiree Health Care Benefits Year Ended June 30, 2018 2017 2016 2018 2017 2016 Service cost $ 124 $ 126 $ 91 $ 19 $ 29 $ 22 Interest cost 729 687 879 52 63 75 Expected return on plan assets (472 ) (460 ) (491 ) — — — Recognized net actuarial loss (gain) 424 872 913 (154 ) (181 ) (210 ) Amortization of prior service cost 27 86 86 (369 ) (271 ) (271 ) Recognition of prior service cost upon plan curtailment 8 — — — — — Net periodic cost (benefits) $ 840 $ 1,311 $ 1,478 $ (452 ) $ (360 ) $ (384 ) |
Weighted-average actuarial assumptions used to determine benefit obligations and net periodic benefit cost | The weighted-average actuarial assumptions used to determine benefit obligations and net periodic benefit cost for the plans were as follows: Pension Benefits Retiree Health Care Benefits June 30, 2018 2017 2018 2017 Assumptions used to determine benefit obligations at year end: Discount rate 3.5 % 2.8 % 3.8 % 3.3 % Assumptions used to determine net periodic benefit cost: Discount rate 2.8 % 2.3 % 3.3 % 2.9 % Expected return on plan assets 7.0 % 7.0 % N/A N/A |
One-Percentage Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in the assumed health care cost trend rates would have had the following effects as of June 30, 2018 and for the year then ended: One-Percentage Point Increase Decrease Effect on total service and interest cost components of periodic expense $ 9 $ (8 ) Effect on post-retirement benefit obligation 152 (130 ) |
Defined Benefit Plan Asset Information | Following are the fair values and target allocation as of June 30: Target Allocation Fair Value 2018 2017 Asset Class: Equity* securities (Level 1) 40 – 70% $ 6,226 $ 3,880 Debt securities (Level 2) 20 – 50% 1,337 2,538 Other (Level 1) 0 – 20% 139 112 Total 100% $ 7,702 $ 6,530 |
Estimated future benefit payments | The following benefit payments, which reflect expected future service, as applicable, are expected to be paid in each of the next five years and in the aggregate for the subsequent five years: During Fiscal Years Pension Benefits Retiree Health Care Benefits 2019 $ 3,700 $ 130 2020 3,800 120 2021 1,300 110 2022 1,300 110 2023 1,400 100 2024 through 2028 5,200 530 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Minimum annual rental commitments under non-cancelable operating leases | The minimum annual rental commitments under non-cancelable operating leases as of June 30, 2018 are as follows: During Fiscal Years 2019 $ 38,100 2020 27,500 2021 17,800 2022 11,200 2023 5,800 Thereafter 11,000 Total minimum lease payments $ 111,400 |
Segment and Geographic Inform34
Segment and Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment financial information | Segment Financial Information Service Center Based Distribution Fluid Power & Flow Control Total Year Ended June 30, 2018 Net sales $ 2,346,418 $ 726,856 $ 3,073,274 Operating income for reportable segments 136,718 83,194 219,912 Assets used in the business 1,198,296 1,087,445 2,285,741 Depreciation and amortization of property 15,336 2,462 17,798 Capital expenditures 18,492 4,738 23,230 Year Ended June 30, 2017 Net sales $ 2,180,358 $ 413,388 $ 2,593,746 Operating income for reportable segments 115,794 46,569 162,363 Assets used in the business 1,187,054 200,541 1,387,595 Depreciation and amortization of property 14,375 931 15,306 Capital expenditures 14,566 2,479 17,045 Year Ended June 30, 2016 Net sales $ 2,150,478 $ 368,950 $ 2,519,428 Operating income for reportable segments 113,111 37,174 150,285 Assets used in the business 1,132,222 179,803 1,312,025 Depreciation and amortization of property 15,049 917 15,966 Capital expenditures 12,500 630 13,130 |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | A reconciliation of operating income for reportable segments to the consolidated income before income taxes Year Ended June 30, 2018 2017 2016 Operating income for reportable segments $ 219,912 $ 162,363 $ 150,285 Adjustments for: Intangible amortization — Service Center Based Distribution 17,375 18,954 19,913 Intangible amortization — Fluid Power & Flow Control 14,690 5,417 5,667 Goodwill Impairment — Service Center Based Distribution — — 64,794 Corporate and other income, net (37,980 ) (37,394 ) (29,871 ) Total operating income 225,827 175,386 89,782 Interest expense, net 23,485 8,541 8,763 Other (income) expense, net (2,376 ) (121 ) 2,041 Income before income taxes $ 204,718 $ 166,966 $ 78,978 |
Net sales by product category | Net sales by product category are as follows: Year Ended June 30, 2018 2017 2016 Industrial $ 2,085,571 $ 1,855,437 $ 1,836,484 Fluid power & flow control 987,703 738,309 682,944 Net sales $ 3,073,274 $ 2,593,746 $ 2,519,428 |
Information by geographic area | Information by geographic area is as follows: Year Ended June 30, 2018 2017 2016 Net Sales: United States $ 2,615,041 $ 2,182,552 $ 2,117,485 Canada 273,622 251,999 257,797 Other Countries 184,611 159,195 144,146 Total $ 3,073,274 $ 2,593,746 $ 2,519,428 June 30, 2018 2017 2016 Long-Lived Assets: United States $ 501,373 $ 207,126 $ 225,538 Canada 50,261 57,947 66,304 Other Countries 5,656 6,558 7,163 Total $ 557,290 $ 271,631 $ 299,005 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other (income) expense, net | Other (income) expense, net, consists of the following: Year Ended June 30, 2018 2017 2016 Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan $ (785 ) $ (1,188 ) $ (87 ) Foreign currency transaction (gains) losses (210 ) 209 1,039 Net other periodic post-employment costs 245 796 981 Life insurance (income) expense, net (1,628 ) 107 108 Other, net 2 (45 ) — Total other (income) expense, net $ (2,376 ) $ (121 ) $ 2,041 |
Business and Accounting Polic36
Business and Accounting Policies Textuals (Details) | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Business and Accounting Policies (Textuals) [Abstract] | |||
Company's domestic inventory relate to LIFO layers | 16.80% | ||
Number of LIFO pools maintained (in pools) | 5 | ||
Shipping, Handling and Transportation Costs | $ 19,320,000 | $ 20,060,000 | $ 21,480,000 |
Vesting period of SARs and stock option awards | 4 years | ||
Contractual Terms of SARs and stock option awards | 10 years | ||
Net other periodic post-employment costs | $ 245,000 | 796,000 | 981,000 |
Computer Software, Intangible Asset [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||
Buildings,BuildingsImprovementsandLeaseholdImprovementsMinimumUsefulLife [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Buildings,BuildingsImprovementsandLeaseholdImprovements MaximumUsefulLife [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
PropertyandEquipmentMinimumUsefulLife [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
PropertyandEquipmentMaximumUsefulLife [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Defined Benefit Plan, Service Cost | $ 143,000 | 155,000 | 113,000 |
Net other periodic post-employment costs | 245,000 | 796,000 | 981,000 |
Reclassification of certain income tax effects to retained earnings, net amount | (471,000) | $ 0 | $ 0 |
Adjustments for New Accounting Pronouncement [Member] | |||
Business and Accounting Policies (Textuals) [Abstract] | |||
Reclassification of certain income tax effects to retained earnings, net amount | $ 471 |
Business Combinations Business
Business Combinations Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill | $ 646,643 | $ 206,135 | $ 202,700 |
FCX Performance, Inc [Member] [Member] | |||
Cash | 11,141 | ||
Accounts receivable | 80,836 | ||
Inventories | 47,325 | ||
Other current assets | 1,657 | ||
Property | 8,282 | ||
Identifiable intangible assets | 305,420 | ||
Goodwill | 439,164 | ||
Other assets | 775 | ||
Total assets acquired | 894,600 | ||
Accounts payable and accrued liabilities | 54,518 | ||
Other liabilities | 2,677 | ||
Deferred tax liabilities | 55,624 | ||
Net assets acquired | 781,781 | ||
Purchase price | 784,281 | ||
Working Capital Adjustments | (2,500) | ||
Total Consideration | $ 781,781 |
Business Combinations Busines38
Business Combinations Business Combinations (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||
Operating income | $ 225,827 | $ 175,386 | $ 89,782 |
FCX Performance, Inc [Member] [Member] | |||
Business Acquisition [Line Items] | |||
Net sales | 249,752 | ||
Operating income | 16,845 | ||
Net income | $ 8,758 |
Business Combinations Busines39
Business Combinations Business Combinations (Details 2) - FCX Performance, Inc [Member] [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Net sales | $ 3,330,430 | $ 2,943,583 |
Operating income | 234,603 | 196,194 |
Net income | $ 158,181 | $ 126,270 |
Diluted net income per share | $ 4.03 | $ 3.20 |
Business Combinations Textuals
Business Combinations Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 31, 2018 | Jul. 03, 2017 | Mar. 03, 2017 | Jun. 14, 2016 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 646,643 | $ 206,135 | $ 202,700 | ||||
Other Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | 283 | ||||||
Other Current Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | 2,592 | ||||||
Other Noncurrent Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | 415 | ||||||
Revolving Credit Facility [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | ||||||
Long-term Debt [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt Instrument, Face Amount | 780,000 | ||||||
FCX Performance, Inc [Member] [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Total Consideration | 781,781 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 160,814 | ||||||
Business Combination, Acquisition Related Costs | 2,849 | ||||||
Goodwill | 439,164 | ||||||
DICOFASA [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Total Consideration | 5,920 | ||||||
Net tangible assets acquired | $ 3,395 | ||||||
Intangible Assets, Net (Including Goodwill) | 2,525 | ||||||
Funding from Holdback Payments | $ 906 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||||
DICOFASA [Member] | Other Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | 842 | ||||||
Sentinel Fluid Controls [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total Consideration | 3,755 | ||||||
Net tangible assets acquired | $ 3,130 | ||||||
Goodwill | 625 | ||||||
Funding from Holdback Payments | 328 | 175 | $ 982 | ||||
Sentinel Fluid Controls [Member] | Other Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | 479 | ||||||
Sentinel Fluid Controls [Member] | Other Noncurrent Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | 75 | ||||||
Seals Unlimited [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
FY2016 Acquisitions Atlantic Fasteners, SG Morris, HUB, & Seals [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total Consideration | 65,900 | ||||||
Net tangible assets acquired | 22,700 | ||||||
Intangible Assets, Net (Including Goodwill) | 43,200 | ||||||
FY2016 Acquisition Atlantic Fasteners & SG Morris [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | $ 3,300 | ||||||
FY 2016 Acquisition Atlantic Fasteners [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | $ 1,250 | ||||||
FY2016 Acquisition SG Morris [Member] | Other Current Liabilities [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Funding from Holdback Payments | $ 2,050 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Inventory [Line Items] | ||
U.S. inventories at average cost | $ 443,521 | $ 373,984 |
Foreign inventories at average cost | 117,711 | 108,734 |
Inventory, Gross, Total | 561,232 | 482,718 |
Inventory, LIFO Reserve | 139,163 | 137,573 |
Inventories on consolidated balance sheets | $ 422,069 | $ 345,145 |
Inventories Inventories Textual
Inventories Inventories Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |||
Effect of LIFO Inventory Liquidation on Income | $ 579 | $ 9,414 | $ 2,100 |
Inventory Write-down | $ 6,000 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in the carrying amount of goodwill by reportable segment | |||
Goodwill, beginning balance | $ 206,135 | $ 202,700 | |
Goodwill acquired during the year | 441,689 | 3,845 | |
Goodwill Impairment | 0 | 0 | $ (64,794) |
Other, primarily currency translation | (1,181) | (410) | |
Goodwill, ending balance | 646,643 | 206,135 | 202,700 |
Service Center Based Distribution Segment [Member] | |||
Changes in the carrying amount of goodwill by reportable segment | |||
Goodwill, beginning balance | 201,740 | 198,486 | |
Goodwill acquired during the year | 2,525 | 3,220 | |
Goodwill Impairment | 0 | 0 | (64,794) |
Other, primarily currency translation | (1,181) | 34 | |
Goodwill, ending balance | 203,084 | 201,740 | 198,486 |
Fluid Power & Flow Control Segment [Member] | |||
Changes in the carrying amount of goodwill by reportable segment | |||
Goodwill, beginning balance | 4,395 | 4,214 | |
Goodwill acquired during the year | 439,164 | 625 | |
Other, primarily currency translation | 0 | (444) | |
Goodwill, ending balance | $ 443,559 | $ 4,395 | $ 4,214 |
Goodwill and Intangibles 1 (Det
Goodwill and Intangibles 1 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 592,816 | $ 296,822 |
Accumulated Amortization | 156,869 | 133,260 |
Net Book Value | 435,947 | 163,562 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | 465,691 | 235,009 |
Accumulated Amortization | 125,009 | 102,414 |
Net Book Value | 340,682 | 132,595 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | 112,939 | 43,873 |
Accumulated Amortization | 22,454 | 19,295 |
Net Book Value | 90,485 | 24,578 |
Vendor Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | 11,425 | 14,152 |
Accumulated Amortization | 7,382 | 9,141 |
Net Book Value | 4,043 | 5,011 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amount | 2,761 | 3,788 |
Accumulated Amortization | 2,024 | 2,410 |
Net Book Value | $ 737 | $ 1,378 |
Goodwill and Intangilbes 2 (Det
Goodwill and Intangilbes 2 (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 305,420 |
Weighted-Average Life (in years) | 18 years 10 months |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 234,370 |
Weighted-Average Life (in years) | 20 years |
Trade Names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 71,050 |
Weighted-Average Life (in years) | 15 years |
Goodwill and Intangibles Textua
Goodwill and Intangibles Textuals (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Goodwill Textuals | ||||
Amortization of intangibles | $ 32,065 | $ 24,371 | $ 25,580 | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 30.00% | |||
Goodwill Impairment | $ 0 | 0 | $ 64,794 | |
Goodwill and Intangibles (Textuals) [Abstract] | ||||
Amortization Expense for For 2019 | 44,000 | |||
Amortization Expense for For 2020 | 42,500 | |||
Amortization Expense for For 2021 | 40,200 | |||
Amortization Expense for For 2022 | 37,800 | |||
Amortization Expense for For 2023 | $ 35,300 | |||
Goodwill [Member] | ||||
Goodwill Textuals | ||||
Number of Reporting Units | 5 | |||
Goodwill [Member] | ||||
Goodwill Textuals | ||||
Number of Reporting Units | 2 | |||
Goodwill [Member] | ||||
Goodwill Textuals | ||||
Number of Reporting Units | 6 | 7 | ||
Canada Service Centers reporting unit [Member] | ||||
Goodwill Textuals | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 8,000 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | |||
Goodwill, Fair Value Disclosure | $ 163,000 | |||
Goodwill Impairment | 56,022 | |||
Australia/New Zealand reporting unit [Member] | ||||
Goodwill Textuals | ||||
Goodwill Impairment | 8,772 | |||
U.S. Service Centers reporting unit [Member] | ||||
Goodwill Textuals | ||||
Goodwill, Transfers | 2,628 | |||
HUB acquisition measurement period adjustment impact [Member] | ||||
Goodwill Textuals | ||||
Amortization of intangibles | 156 | |||
Service Center Based Distribution Segment [Member] | ||||
Goodwill Textuals | ||||
Amortization of intangibles | $ 17,375 | 18,954 | $ 19,913 | |
Goodwill Impairment | 0 | 0 | 64,794 | |
Accumulated goodwill impairment losses | 64,794 | |||
Service Center Based Distribution Segment [Member] | HUB acquisition measurement period adjustment impact [Member] | ||||
Goodwill Textuals | ||||
Goodwill, Purchase Accounting Adjustments | 3,220 | |||
Fluid Power Businesses Segment [Member] | ||||
Goodwill Textuals | ||||
Amortization of intangibles | 14,690 | 5,417 | $ 5,667 | |
Accumulated goodwill impairment losses | $ 36,605 | |||
Customer Relationships [Member] | HUB acquisition measurement period adjustment impact [Member] | ||||
Goodwill Textuals | ||||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | 2,636 | |||
Trade Names [Member] | HUB acquisition measurement period adjustment impact [Member] | ||||
Goodwill Textuals | ||||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ 584 |
Debt Debt (Details)
Debt Debt (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 19,734 |
2,020 | 49,613 |
2,021 | 79,241 |
2,022 | 84,120 |
2,023 | 708,124 |
Thereafter | $ 25,231 |
Debt Textuals (Details)
Debt Textuals (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Amount Outstanding | $ 19,500,000 | |
Letters of Credit Outstanding, Amount | $ 2,698,000 | |
Debt Issuance Costs, Gross, Current | 551,000 | 105,000 |
Debt Issuance Cost, Gross, Noncurrent | 1,807,000 | 294,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility unsecured borrowings amount | 250,000,000 | |
Letters of Credit Outstanding, Amount | 3,625,000 | 2,441,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 226,875,000 | 247,559,000 |
Debt, Weighted Average Interest Rate | 3.93% | |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fees on credit facility | 0.10% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Fees on credit facility | 0.20% | |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 780,000,000 | |
Long-term Debt | $ 775,125,000 | $ 120,313,000 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.13% | 2.25% |
Prudential Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 170,000,000 | |
Debt Instrument, Unused Borrowing Capacity, Amount | 50,000,000 | |
Prudential Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Fee Amount | 0.0025 | |
Prudential Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Fee Amount | 0.0125 | |
Prudential Facility - Series C [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 120,000,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.19% | |
Prudential Facility - Series D [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 50,000,000 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.21% | |
State of Ohio Assumed Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 2,359,000 | |
Long-term Debt | $ 1,438,000 | $ 1,669,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.50% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 10,318 | $ 10,481 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Components of income before income taxes | |||
U.S. | $ 186,874 | $ 154,472 | $ 139,960 |
Foreign | 17,844 | 12,494 | (60,982) |
Income Before Income Taxes | $ 204,718 | $ 166,966 | $ 78,978 |
Income Taxes 1 (Details)
Income Taxes 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||
Federal | $ 48,131 | $ 26,456 | $ 45,226 |
State and local | 8,038 | 4,692 | 6,349 |
Foreign | 5,309 | 4,760 | 4,407 |
Total current | 61,478 | 35,908 | 55,982 |
Deferred: | |||
Federal | 5,955 | 852 | 397 |
State and local | (586) | 535 | (30) |
Foreign | (3,754) | (4,239) | (6,948) |
Total deferred | 1,615 | (2,852) | (6,581) |
Total | $ 63,093 | $ 33,056 | $ 49,401 |
Income Taxes 2 (Details)
Income Taxes 2 (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliations of federal statutory income tax rate and Company's effective income tax rate: | ||||
Statutory income tax rate | 21.00% | 28.06% | 35.00% | 35.00% |
State and local taxes | 3.10% | 2.80% | 5.20% | |
U.S. federal tax reform | 3.10% | 0.00% | 0.00% | |
Worthless stock deduction | (0.00%) | (13.90%) | (0.00%) | |
Stock compensation | (0.40%) | (1.40%) | (0.00%) | |
Goodwill impairment | 0.00% | 0.00% | 27.10% | |
Impact of foreign operations | (1.30%) | (2.30%) | (3.00%) | |
Deductible dividend | (0.30%) | (0.40%) | (0.90%) | |
Valuation allowance | (0.90%) | 0.30% | 0.50% | |
Other, net | (0.60%) | (0.30%) | (1.30%) | |
Effective income tax rate | 30.80% | 19.80% | 62.60% |
Income Taxes 3 (Details)
Income Taxes 3 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Compensation liabilities not currently deductible | $ 19,334 | $ 26,873 |
Other expenses and reserves not currently deductible | 13,169 | 11,601 |
Goodwill and intangibles | 3,197 | 5,661 |
Foreign tax credit (expiring in years 2025-2026) | 413 | 709 |
Net operating loss carryforwards (expiring in years 2023-2038) | 11,315 | 5,729 |
Other | 199 | 119 |
Total deferred tax assets | 47,627 | 50,692 |
Less: Valuation allowance | (38) | (1,831) |
Deferred tax assets, net of valuation allowance | 47,589 | 48,861 |
Deferred tax liabilities: | ||
Inventories | (8,196) | (7,447) |
Goodwill and intangibles | (86,176) | (30,482) |
Depreciation and differences in property bases | (9,294) | (10,122) |
Total deferred tax liabilities | 103,666 | 48,051 |
Net deferred tax (liabilities) | 56,077 | |
Net deferred tax assets | 810 | |
Net deferred tax (liabilities) assets are classified as follows: | ||
Other assets | 2,103 | 8,985 |
Other liabilities | (58,180) | (8,175) |
Net deferred tax (liabilities) | $ 56,077 | |
Net deferred tax assets | $ 810 |
Income Taxes 4 (Details)
Income Taxes 4 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of the Company's total gross unrecognized income tax benefits | |||
Unrecognized Income Tax Benefits at beginning of the year | $ 3,533 | $ 2,915 | $ 2,604 |
Current year tax positions | 143 | 574 | 539 |
Prior year tax positions | 636 | 259 | 0 |
Expirations of statutes of limitations | (324) | (189) | (132) |
Settlements | 0 | (26) | (96) |
Unrecognized Income Tax Benefits at end of year | $ 3,988 | $ 3,533 | $ 2,915 |
Income Taxes Textuals (Details)
Income Taxes Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.06% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 12,113 | |||
Tax Cuts and Jobs Act - Transition tax amount | 3,877 | |||
Tax Cuts and Jobs Act - Re-measurement of deferred tax | 2,414 | |||
Tax Cuts and Jobs Act - Net Tax Benefit | 5,822 | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | $ 22,246 | |||
Valuation Allowances and Reserves, Deductions | 1,019 | |||
Employee Service Share-based Compensation, Tax Benefit from Exercse of Stock Options | 419 | 1,921 | $ 212 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 430 | 482 | ||
Incremental income tax benefits from vesting of stock awards and other stock compensation recorded in additional paid-in capital | (4) | |||
Undistributed Earnings Of Foreign Subsidiaries On Which No Provision Has Been Made For Income Taxes | $ 77,374 | 77,374 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 1,986 | 1,986 | ||
Unrecognized income tax benefits that would affect the effective income tax rate | 3,725 | 3,725 | 3,323 | 2,691 |
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | (110) | (110) | ||
Income Tax Examination, Penalties and Interest Expense | 163 | $ 127 | ||
Income Tax Examination, Penalties and Interest Accrued | $ 677 | $ 677 | $ 787 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Beginning Balance | $ (81,702) | ||
Other comprehensive income (loss), Unrealized Gain (Loss) on securities available for sale, Net of Tax | 20 | $ 59 | $ (34) |
Net current-period other comprehensive income (loss), net of taxes | (8,549) | 2,238 | (24,441) |
Net current-period other comprehensive (loss) income | (8,521) | 3,844 | (25,375) |
Ending Balance | (90,223) | (81,702) | |
Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Reclassification of certain income tax effects to retained earnings, net amount | (471) | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification of certain income tax effects to retained earnings, net amount | (45) | 308 | 315 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Reclassification of certain income tax effects to retained earnings, net amount | (502) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Beginning Balance | (79,447) | (81,685) | (57,244) |
Other comprehensive income (loss), foreign currency translation adjustment, net of tax | (8,549) | 2,238 | (24,441) |
Reclassification of certain income tax effects to retained earnings, net amount | 0 | 0 | 0 |
Net current-period other comprehensive income (loss), net of taxes | (8,527) | 2,238 | (24,441) |
Ending Balance | (87,974) | (79,447) | (81,685) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Reclassification of certain income tax effects to retained earnings, net amount | 22 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Beginning Balance | 21 | (38) | (4) |
Other comprehensive income (loss), Unrealized Gain (Loss) on securities available for sale, Net of Tax | 20 | 59 | (34) |
Reclassification of certain income tax effects to retained earnings, net amount | 0 | 0 | 0 |
Net current-period other comprehensive income (loss), net of taxes | 29 | 59 | (34) |
Ending Balance | 50 | 21 | (38) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Reclassification of certain income tax effects to retained earnings, net amount | 9 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Beginning Balance | (2,276) | (3,823) | (2,923) |
Other Comprehensive Income (Loss), Defined Benefit Plan, before Reclassification Adjustment, after Tax | 524 | 1,239 | (1,215) |
Net current-period other comprehensive income (loss), net of taxes | (23) | 1,547 | (900) |
Ending Balance | (2,299) | (2,276) | (3,823) |
AOCI Attributable to Parent [Member] | |||
Beginning Balance | (81,702) | (85,546) | (60,171) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (8,005) | 3,536 | (25,690) |
Net current-period other comprehensive (loss) income | (8,521) | 3,844 | (25,375) |
Ending Balance | (90,223) | $ (81,702) | $ (85,546) |
AOCI Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Reclassification of certain income tax effects to retained earnings, net amount | $ (471) |
Shareholders' Equity OCI (Detai
Shareholders' Equity OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Foreign currency translation adjustment pre-tax amount | $ (8,875) | $ 2,238 | $ (24,441) |
Foreign currency translation adjustment tax expense (benefit) | (326) | 0 | 0 |
Foreign Currency Translation Adjustment, Net Amount | (8,549) | 2,238 | (24,441) |
Actuarial gain (loss) on remeasurement, pre-tax amount | 709 | 2,038 | (1,998) |
Actuarial gain (loss) on remeasurement, tax expense (benefit) | 185 | 799 | (783) |
Actuarial gain ( loss) on remeasurement, net amount | 524 | 1,239 | (1,215) |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net period pension costs, pre-tax amount | (73) | 506 | 518 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net period pension costs, tax expense | (28) | 198 | 203 |
Reclassification of actuarial losses and prior service cost into SD&A expense and included in net period pension costs, net amount | (45) | 308 | 315 |
Unrealized gain (loss) on investment securities available for sale, pre-tax amount | 37 | 91 | (52) |
Unrealized gain (loss) on investment securities available for sale, tax expense (benefit) | 17 | 32 | (18) |
Unrealized gain (loss) on investment securities available for sale, net amount | 20 | 59 | (34) |
Other Comprehensive Income (Loss), pre-tax amount | (8,202) | 4,873 | (25,973) |
Other Comprehensive Income (Loss), tax expense (benefit) | 319 | 1,029 | (598) |
Other comprehensive income (loss) | (8,521) | 3,844 | (25,375) |
Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Reclassification of certain income tax effects to retained earnings, pre-tax amount | 0 | 0 | 0 |
Reclassification of certain income tax effects to retained earnings, tax expense (benefit) | 471 | 0 | 0 |
Reclassification of certain income tax effects to retained earnings, net amount | $ (471) | $ 0 | $ 0 |
Shareholders' Equity Net Income
Shareholders' Equity Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Net income | $ 141,625 | $ 133,910 | $ 29,577 |
Average Shares Outstanding: | |||
Weighted-average common shares outstanding for basic computation | 38,752 | 39,013 | 39,254 |
Dilutive effect of potential common shares | 529 | 391 | 212 |
Weighted-average common shares outstanding for dilutive computation | 39,281 | 39,404 | 39,466 |
Net Income Per Share — Basic | $ 3.65 | $ 3.43 | $ 0.75 |
Net Income Per Share — Diluted | $ 3.61 | $ 3.40 | $ 0.75 |
Shareholders' Equity Textuals (
Shareholders' Equity Textuals (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Shareholders' Equity (Textuals) [Abstract] | |||
Common stock held as treasury shares restricted as (in shares) | 596 | ||
Antidilutive Stock options and appreciation rights relating to the acquisition of shares of common stock not included in the computation of diluted earnings per share (in shares) | 66 | 141 | 775 |
Share - Based Compensation (Det
Share - Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Compensation costs charged to expense under award programs | |||
Total compensation costs under award programs | $ 6,627 | $ 5,520 | $ 4,067 |
Stock Options and Stock Appreciation Rights [ Member] | |||
Compensation costs charged to expense under award programs | |||
Total compensation costs under award programs | 1,961 | 1,891 | 1,543 |
Performance Shares [Member] | |||
Compensation costs charged to expense under award programs | |||
Total compensation costs under award programs | 2,006 | 1,331 | 446 |
Restricted stock and Restricted Stock units [Member] | |||
Compensation costs charged to expense under award programs | |||
Total compensation costs under award programs | $ 2,660 | $ 2,298 | $ 2,078 |
Share - Based Compensation Shar
Share - Based Compensation Share Based Compensation 1 (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items] | |
Total unrecognized compensation costs under award programs | $ 9,184 |
Expected Period for Recognition | 2 years 1 month |
Stock Options and Stock Appreciation Rights [ Member] | |
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items] | |
Total unrecognized compensation costs under award programs | $ 3,729 |
Expected Period for Recognition | 2 years 6 months |
Performance Shares [Member] | |
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items] | |
Total unrecognized compensation costs under award programs | $ 3,282 |
Expected Period for Recognition | 1 year 8 months |
Restricted stock and Restricted Stock units [Member] | |
Schedule Of Unrecognized Compensation Cost Nonvested Awards Table Text Block [Line Items] | |
Total unrecognized compensation costs under award programs | $ 2,173 |
Expected Period for Recognition | 1 year 11 months |
Share - Based Compensation 2 (D
Share - Based Compensation 2 (Details) - Stock Options and Stock Appreciation Rights [ Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted-average assumptions used for SARs and stock option grants issued | |||
Expected life, in years | 6 years | 4 years 10 months | 4 years 5 months |
Risk free interest rate | 2.10% | 1.20% | 1.30% |
Dividend yield | 2.50% | 2.50% | 2.50% |
Volatility | 24.30% | 24.10% | 26.00% |
Per share fair value of SAR's and stock options granted during the year | $ 11.25 | $ 7.97 | $ 6.79 |
Share - Based Compensation 3 (D
Share - Based Compensation 3 (Details) - Stock Options and Stock Appreciation Rights [ Member] shares in Thousands | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, beginning of year, Shares | shares | 1,218 |
Granted, Shares | shares | 286 |
Exercised, Shares | shares | (58) |
Forfeited, Shares | shares | (45) |
Outstanding, end of year, Shares | shares | 1,401 |
Exercisable at end of year, Shares | shares | 789 |
Expected to Vest at end of year, Shares | shares | 1,379 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding, beginning of year, Weighted-Average Exercise Price | $ / shares | $ 42.26 |
Granted, Weighted-Average Exercise Price | $ / shares | 58.40 |
Exercised, Weighted-Average Exercise Price | $ / shares | 37.55 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 55.64 |
Outstanding, end of year, Weighted-Average Exercise Price | $ / shares | 45.32 |
Exercisable at end of year, Weighted-Average Exercise Price | $ / shares | 41.08 |
Expected to Vest at end of year, Weighted-Average Exercise Price | $ / shares | $ 45.22 |
Share - Based Compensation 4 (D
Share - Based Compensation 4 (Details) - Performance shares [Member] shares in Thousands | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance, Shares | shares | 52 |
Granted, shares | shares | 51 |
Vested, Shares | shares | (10) |
Ending Balance, Shares | shares | 93 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 43.99 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 47.13 |
Vested, Weighted-Average Grant- Date Fair Value | $ / shares | 48.76 |
Ending Balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 45.16 |
Share - Based Compensation - 5
Share - Based Compensation - 5 (Details) - Restricted stock and Restricted Stock units [Member] shares in Thousands | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance, Shares | shares | 116 |
Beginning Balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 46.91 |
Granted, shares | shares | 53 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | $ 62.62 |
Forfeitures | shares | (10) |
Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 54.96 |
Vested, Shares | shares | (43) |
Vested, Weighted-Average Grant- Date Fair Value | $ / shares | $ 52.58 |
Ending Balance, Shares | shares | 116 |
Ending Balance, Weighted-Average Grant-Date Fair Value | $ / shares | $ 51.27 |
Share - Based Compensation Text
Share - Based Compensation Textuals (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 430 | $ 482 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month | ||
Aggregate number of shares of common stock awarded under the 2015 Plan | 2,500 | ||
Shares available for future grants | 1,655 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||
Stock Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 1,923 | 4,848 | $ 1,595 |
Stock Options and Stock Appreciation Rights [ Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | ||
Weighted-average remaining contractual terms for SARs/stock options outstanding | 6 years 7 months | ||
Weighted-average remaining contractual terms for SARs/stock options exercisable | 5 years 4 months | ||
Weighted-average remaining contractual terms for SARs/stock options expected to vest | 6 years 7 months | ||
Aggregate intrinsic values of SARs and stock options outstanding | $ 34,869 | ||
Aggregate intrinsic values of SARs/stock options exercisable | 22,927 | ||
Aggregate intrinsic values of SARs/stock options expected to vest | 34,440 | ||
Aggregate intrinsic values of SARs/stock options exercised during period | 1,765 | 8,396 | 2,422 |
Total fair value of shares vested | $ 2,149 | $ 1,788 | $ 1,291 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months | ||
Shares available for future grants | 67 | ||
Share-based compensation arrangement by share-based payment award, award requisite service period | 3 years | ||
Restricted stock and Restricted Stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 months | ||
Restricted stock and Restricted Stock units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||
Restricted stock and Restricted Stock units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | $ 6,530 | ||
Fair value of plan assets at end of year | 7,702 | $ 6,530 | |
Pension Benefits [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of the year | 24,411 | 26,605 | |
Service cost | 124 | 126 | $ 91 |
Interest cost | 729 | 687 | 879 |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | 3,181 | 1,562 | |
Amendments | 0 | 0 | |
Actuarial gain during year | (549) | (1,445) | |
Benefit obligation at end of year | 21,534 | 24,411 | 26,605 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 6,530 | 6,737 | |
Actual gain on plan assets | 516 | 578 | |
Employer contributions | 3,837 | 776 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | 3,181 | 1,561 | |
Fair value of plan assets at end of year | 7,702 | 6,530 | 6,737 |
Funded status at end of year | (13,832) | (17,881) | |
Postretirement Health Coverage [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of the year | 1,684 | 2,235 | |
Service cost | 19 | 29 | 22 |
Interest cost | 52 | 63 | 75 |
Plan participants’ contributions | 68 | 69 | |
Benefits paid | 223 | 237 | |
Amendments | 0 | (245) | |
Actuarial gain during year | (109) | (230) | |
Benefit obligation at end of year | 1,491 | 1,684 | 2,235 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual gain on plan assets | 0 | 0 | |
Employer contributions | 155 | 168 | |
Plan participants’ contributions | 68 | 69 | |
Benefits paid | 223 | 237 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (1,491) | $ (1,684) |
Benefit Plans Benefit Plans 1 (
Benefit Plans Benefit Plans 1 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Amounts recognized in the consolidated balance sheets: | ||
Post-employment benefits | $ 11,985 | $ 16,715 |
Pension Plan [Member] | ||
Amounts recognized in the consolidated balance sheets: | ||
Other current liabilities | 3,298 | 2,814 |
Post-employment benefits | 10,534 | 15,067 |
Net amount recognized | 13,832 | 17,881 |
Amounts recognized in accumulated other comprehensive loss: | ||
Net actuarial (loss) gain | (4,781) | (5,798) |
Prior service cost | 0 | (35) |
Total amounts recognized in accumulated other comprehensive loss | (4,781) | (5,833) |
Postretirement Health Coverage [Member] | ||
Amounts recognized in the consolidated balance sheets: | ||
Other current liabilities | 220 | 220 |
Post-employment benefits | 1,271 | 1,464 |
Net amount recognized | 1,491 | 1,684 |
Amounts recognized in accumulated other comprehensive loss: | ||
Net actuarial (loss) gain | 1,121 | 1,167 |
Prior service cost | 554 | 922 |
Total amounts recognized in accumulated other comprehensive loss | $ 1,675 | $ 2,089 |
Benefit Plans 2 (Details)
Benefit Plans 2 (Details) - Pension Benefits [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Information for pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligations | $ 21,534 | $ 24,411 |
Accumulated benefit obligations | 21,534 | 24,411 |
Fair value of plan assets | $ 7,702 | $ 6,530 |
Benefit Plans 3 (Details)
Benefit Plans 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits [Member] | |||
Net periodic costs | |||
Service cost | $ 124 | $ 126 | $ 91 |
Interest cost | 729 | 687 | 879 |
Expected return on plan assets | (472) | (460) | (491) |
Recognized net actuarial loss (gain) | 424 | 872 | 913 |
Amortization of prior service cost | 27 | 86 | 86 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (8) | 0 | 0 |
Net periodic cost (benefits) | 840 | 1,311 | 1,478 |
Postretirement Health Coverage [Member] | |||
Net periodic costs | |||
Service cost | 19 | 29 | 22 |
Interest cost | 52 | 63 | 75 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | (154) | (181) | (210) |
Amortization of prior service cost | (369) | (271) | (271) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | 0 |
Net periodic cost (benefits) | $ (452) | $ (360) | $ (384) |
Benefit Plans 4 (Details)
Benefit Plans 4 (Details) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits [Member] | ||
Assumptions used to determine benefit obligations at year end: | ||
Discount rate | 3.50% | 2.80% |
Assumptions used to determine net periodic benefit cost: | ||
Discount rate | 2.80% | 2.30% |
Expected return on plan assets | 7.00% | 7.00% |
Postretirement Health Coverage [Member] | ||
Assumptions used to determine benefit obligations at year end: | ||
Discount rate | 3.80% | 3.30% |
Assumptions used to determine net periodic benefit cost: | ||
Discount rate | 3.30% | 2.90% |
Benefit Plans 5 (Details)
Benefit Plans 5 (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
One-Percentage Point Change in Assumed Health Care Cost Trend Rates | |
Effect on total service and interest cost components of periodic expense (Increase) | $ 9 |
Effect on total service and interest cost components of periodic expense (Decrease) | (8) |
Effect on postretirement benefit obligation (Increase) | 152 |
Effect on postretirement benefit obligation (Decrease) | $ (130) |
Benefit Plans 6 (Details)
Benefit Plans 6 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |
Fair value of plan assets | $ 7,702 | $ 6,530 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Asset Information | ||
Fair value of plan assets | 6,226 | 3,880 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Asset Information | ||
Fair value of plan assets | 1,337 | 2,538 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Asset Information | ||
Fair value of plan assets | $ 139 | $ 112 |
Minimum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% | |
Minimum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | |
Minimum [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |
Maximum [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70.00% | |
Maximum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | |
Maximum [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Asset Information | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% |
Benefit Plans 7 (Details)
Benefit Plans 7 (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Pension Benefits [Member] | |
Estimated future benefit payments | |
2,019 | $ 3,700 |
2,020 | 3,800 |
2,021 | 1,300 |
2,022 | 1,300 |
2,023 | 1,400 |
2024 through 2028 | 5,200 |
Postretirement Health Coverage [Member] | |
Estimated future benefit payments | |
2,019 | 130 |
2,020 | 120 |
2,021 | 110 |
2,022 | 110 |
2,023 | 100 |
2024 through 2028 | $ 530 |
Benefit Plans Textuals (Details
Benefit Plans Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Benefit Plans (Textuals) [Abstract] | |||
Net other periodic post-employment costs | $ 245 | $ 796 | $ 981 |
Assumed health care cost trend rates used in measuring the accumulated benefit obligation for retiree health care benefits | 7.00% | ||
Assumed health care cost trend rates used in measuring the accumulated benefit obligation for retiree health care 2027 rate | 5.00% | ||
Pension Benefits [Member] | |||
Benefit Plans (Textuals) [Abstract] | |||
Defined Benefit Plan, Service Cost | $ 124 | 126 | 91 |
Estimated net actuarial gain (loss) | (185) | ||
Expected contribution to benefit plans in 2019 | 3,300 | ||
Postretirement Health Coverage [Member] | |||
Benefit Plans (Textuals) [Abstract] | |||
Defined Benefit Plan, Service Cost | 19 | 29 | 22 |
Estimated net actuarial gain (loss) | 121 | ||
Estimated prior service cost | 369 | ||
Expected contribution to benefit plans in 2019 | $ 130 | ||
401(k) [Member] | |||
Benefit Plans (Textuals) [Abstract] | |||
Percentage of defined contribution plan by plan participants | 50.00% | ||
Defined contribution plan cost | $ 6,551 | 6,677 | 2,535 |
KERP [Member] | |||
Benefit Plans (Textuals) [Abstract] | |||
Defined contribution plan cost | 359 | 289 | 268 |
Adjustments for New Accounting Principle, Early Adoption [Member] | |||
Benefit Plans (Textuals) [Abstract] | |||
Defined Benefit Plan, Service Cost | 143 | 155 | 113 |
Net other periodic post-employment costs | $ 245 | $ 796 | $ 981 |
Leases (Details)
Leases (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Minimum Annual Rental Commitments Under Non Cancelable Operating Leases | |
2,019 | $ 38,100 |
2,020 | 27,500 |
2,021 | 17,800 |
2,022 | 11,200 |
2,023 | 5,800 |
Thereafter | 11,000 |
Total minimum lease payments | $ 111,400 |
Leases Leases Textuals (Details
Leases Leases Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Leases [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 41,000 | $ 35,900 | $ 37,300 |
Related Party Transaction, Expenses from Transactions with Related Party | $ 2,400 | $ 2,400 | $ 3,800 |
Segment and Geographic Inform78
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment financial information | |||
Net Sales | $ 3,073,274 | $ 2,593,746 | $ 2,519,428 |
Operating income for reportable segments | 225,827 | 175,386 | 89,782 |
Assets used in the business | 2,285,741 | 1,387,595 | |
Depreciation and amortization of property | 17,798 | 15,306 | 15,966 |
Capital expenditures | 23,230 | 17,045 | 13,130 |
Service Center Based Distribution Segment [Member] | |||
Segment financial information | |||
Net Sales | 2,346,418 | 2,180,358 | 2,150,478 |
Operating income for reportable segments | 136,718 | 115,794 | 113,111 |
Assets used in the business | 1,198,296 | 1,187,054 | 1,132,222 |
Depreciation and amortization of property | 15,336 | 14,375 | 15,049 |
Capital expenditures | 18,492 | 14,566 | 12,500 |
Fluid Power & Flow Control Segment [Member] | |||
Segment financial information | |||
Net Sales | 726,856 | 413,388 | 368,950 |
Operating income for reportable segments | 83,194 | 46,569 | 37,174 |
Assets used in the business | 1,087,445 | 200,541 | 179,803 |
Depreciation and amortization of property | 2,462 | 931 | 917 |
Capital expenditures | 4,738 | 2,479 | 630 |
Reportable Segment [Member] | |||
Segment financial information | |||
Net Sales | 3,073,274 | 2,593,746 | 2,519,428 |
Operating income for reportable segments | 219,912 | 162,363 | 150,285 |
Assets used in the business | 2,285,741 | 1,387,595 | 1,312,025 |
Depreciation and amortization of property | 17,798 | 15,306 | 15,966 |
Capital expenditures | $ 23,230 | $ 17,045 | $ 13,130 |
Segment and Geographic Inform79
Segment and Geographic Information 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | |||
Operating income for reportable segments | $ 225,827 | $ 175,386 | $ 89,782 |
Adjustments for: | |||
Intangible amortization | 32,065 | 24,371 | 25,580 |
Goodwill Impairment | 0 | 0 | 64,794 |
Operating Income | 225,827 | 175,386 | 89,782 |
Interest expense, net | 23,485 | 8,541 | 8,763 |
Other (income) expense, net | (2,376) | (121) | 2,041 |
Income Before Income Taxes | 204,718 | 166,966 | 78,978 |
Reportable Segment [Member] | |||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | |||
Operating income for reportable segments | 219,912 | 162,363 | 150,285 |
Adjustments for: | |||
Operating Income | 219,912 | 162,363 | 150,285 |
Service Center Based Distribution Segment [Member] | |||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | |||
Operating income for reportable segments | 136,718 | 115,794 | 113,111 |
Adjustments for: | |||
Intangible amortization | 17,375 | 18,954 | 19,913 |
Goodwill Impairment | 0 | 0 | 64,794 |
Operating Income | 136,718 | 115,794 | 113,111 |
Fluid Power & Flow Control Segment [Member] | |||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | |||
Operating income for reportable segments | 83,194 | 46,569 | 37,174 |
Adjustments for: | |||
Intangible amortization | 14,690 | 5,417 | 5,667 |
Operating Income | 83,194 | 46,569 | 37,174 |
Corporate and Other [Member] | |||
Adjustments for: | |||
Corporate and other income, net | $ (37,980) | $ (37,394) | $ (29,871) |
Segment and Geographic Inform80
Segment and Geographic Information 2 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales by product category | |||
Net Sales | $ 3,073,274 | $ 2,593,746 | $ 2,519,428 |
Industrial [Member] | |||
Net sales by product category | |||
Net Sales | 2,085,571 | 1,855,437 | 1,836,484 |
Fluid Power [Member] | |||
Net sales by product category | |||
Net Sales | $ 987,703 | $ 738,309 | $ 682,944 |
Segment and Geographic Inform81
Segment and Geographic Information 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues From External Customers and Long Lived Assets [Line Items] | |||
Net Sales | $ 3,073,274 | $ 2,593,746 | $ 2,519,428 |
Long-Lived Assets | 557,290 | 271,631 | 299,005 |
United States [Member] | |||
Revenues From External Customers and Long Lived Assets [Line Items] | |||
Net Sales | 2,615,041 | 2,182,552 | 2,117,485 |
Long-Lived Assets | 501,373 | 207,126 | 225,538 |
Canada [Member] | |||
Revenues From External Customers and Long Lived Assets [Line Items] | |||
Net Sales | 273,622 | 251,999 | 257,797 |
Long-Lived Assets | 50,261 | 57,947 | 66,304 |
Other Countries [Member] | |||
Revenues From External Customers and Long Lived Assets [Line Items] | |||
Net Sales | 184,611 | 159,195 | 144,146 |
Long-Lived Assets | $ 5,656 | $ 6,558 | $ 7,163 |
Segment and Geographic Inform82
Segment and Geographic Information Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenue, Net | $ 3,073,274 | $ 2,593,746 | $ 2,519,428 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue, Net | $ 25,556 | $ 22,719 | $ 20,261 |
Other (Income) Expense, Net (De
Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other (income) expense, net | |||
Unrealized gain on assets held in rabbi trust for a non-qualified deferred compensation plan | $ (785) | $ (1,188) | $ (87) |
Foreign currency transaction (gains) losses | (210) | 209 | 1,039 |
Net other periodic post-employment costs | 245 | 796 | 981 |
Life insurance (income) expense, net | (1,628) | 107 | 108 |
Other, net | (2) | 0 | |
Other, net | (45) | ||
Total other (income) expense, net | $ (2,376) | $ (121) | $ 2,041 |
Schedule II - Valuation and Q84
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Deductions from reserves | $ 1,019 | |||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 9,628 | 11,034 | $ 10,621 | |
Additions charged to costs and expenses | 2,803 | 2,071 | 4,303 | |
Additions (Deductions) Charged to Other Accounts | [1] | 4,578 | (133) | (46) |
Deductions from reserves | [2] | 3,443 | 3,344 | 3,844 |
Balance at end of period | $ 13,566 | $ 9,628 | $ 11,034 | |
[1] | Amounts in the year ending June 30, 2018 represent reserves recorded through purchase accounting for acquisitions made during the year of $3,549 and for the return of merchandise by customers of $1,029. Amounts in prior fiscal years represent reserves for the return of merchandise by customers. | |||
[2] | Amounts represent uncollectible accounts charged off. |